Shares of China’s Chengdu Aircraft Corporation (CAC), the manufacturer of the JF-17 and J-10C fighter jets, surged more than 17% on Wednesday following reports that Pakistan Air Force (PAF) successfully shot down multiple Indian combat aircraft, including French-made Rafale jets.
The CAC stock rallied at the Shenzhen Stock Exchange, reaching as high as CNY 71.08, reflecting an 18% increase from its previous close. At the time of reporting, the shares were trading at CNY 68.88, maintaining a 16.29% gain.
The market movement followed statements from Pakistan’s Defence Minister confirming the downing of five Indian fighter jets in retaliatory action against overnight Indian aggression. According to military sources, three Rafales, one MiG-29, one SU-30, and a Heron surveillance drone were destroyed as they attempted to strike Pakistani targets with stand-off munitions.
A PAF spokesperson confirmed that no Pakistani aircraft were lost in the engagements, and all jets safely returned to their bases, enhancing the image of the JF-17 and J-10C fighters involved in the mission.
In contrast, Dassault Aviation, the French aerospace company behind the Rafale jets, saw its stock decline EUR 5.40 (1.64%) to EUR 324 on the Paris Stock Exchange. Defence analysts predict the company may face further losses — up to 5% — amid rising scrutiny of the Rafale’s performance in high-stakes combat scenarios.
This dramatic contrast in investor behavior reflects not just immediate market sentiment but may also signal a broader shift in perception of aerial combat platforms. Experts suggest the success of Chinese-manufactured jets, particularly the JF-17 Thunder jointly developed with Pakistan, may prompt greater interest from global buyers.
The incident has reignited global debate around the combat efficacy and reliability of India’s Rafale fleet, particularly in contested airspaces like the subcontinent. Meanwhile, the military-industrial relationship between Pakistan and China appears further solidified by the performance of their joint aerospace ventures.
