Pakistan’s Bid for Chinese J-35 Jets Sparks Market Rally
Shares of Chinese defense manufacturers surged dramatically following Pakistan’s announcement of its plans to acquire advanced military aircraft from China. The focal point of this deal is the J-35 fifth-generation stealth fighter, a highly anticipated aircraft developed by Shenyang Aircraft Corporation.
Details of Pakistan’s Proposed Military Acquisition
On June 6, Pakistan's government revealed on social media its intention to purchase 40 J-35 stealth fighters, alongside KJ-500 airborne early warning and control systems and HQ-19 ballistic missile defense platforms. If completed, this deal would mark the first known export of China’s J-35 jets to a foreign nation.
The J-35 was unveiled publicly for the first time at the 2024 Zhuhai Airshow and boasts advanced stealth capabilities designed to compete with other leading fifth-generation fighters globally.
Market Reaction and Broader Implications
In response to the news, shares of AVIC Shenyang Aircraft Company hit the daily 10% trading limit on the Shanghai Stock Exchange, extending a three-day winning streak. Other defense-related stocks were also buoyant, with Aerospace Nanhu Electronic Information Technology Co. leaping as much as 15%.
This surge coincides with heightened regional tensions between India and Pakistan, which recently experienced cross-border skirmishes involving air strikes, drones, missiles, and artillery fire. Notably, India’s Chief of Defence Staff acknowledged the loss of fighter jets during these clashes, although specifics were withheld.
Rising Interest in Chinese Military Hardware
Pakistan previously claimed that Chinese J-10C fighters assisted in downing six Indian jets, including Rafales, though India disputes the effectiveness of Pakistan’s weapon systems. Nonetheless, this reported arms purchase highlights the growing appetite across Asia for Chinese military technology over traditional suppliers like the U.S. and Russia.
China’s defense sector has made significant strides despite past internal corruption issues. Recent milestones include the launch of next-generation amphibious assault ships and viral videos hinting at the development of a sixth-generation stealth fighter prototype, further fueling investor confidence.
What’s Next?
The prospective purchase of advanced Chinese weaponry by Pakistan underscores an evolving balance of military power in South Asia and signals China’s increasing footprint in global arms exports. While official confirmations and contract details remain pending, the ripple effects on defense markets are already unmistakable.
