The stock market witnessed a sharp spike in the shares of Chengdu Aircraft Corporation, the Chinese manufacturer of JF-17 Thunder and J-10C fighter jets, following a decisive military response by the Pakistan Air Force (PAF) against Indian aerial aggression.
The PAF shot down five Indian aircraft and drones, including three Rafale jets, in a retaliatory operation that has sent shockwaves through both military and financial circles.
The surge in Chengdu Aircraft Corporation's shares, which increased by 18.18%, reflects the growing global recognition of Chinese-made fighter jets in the wake of the Pakistan Air Force’s impressive counteraction.
This significant uptick came after the Indian Air Force (IAF) launched a deadly airstrike targeting six different sites across Pakistan, resulting in 26 deaths and 46 injuries, including attacks on mosques. The IAF’s air raid added another layer of tension to the ongoing conflict between the nuclear-armed neighbors.
In response to the Indian aggression, the PAF launched a comprehensive counteroffensive, successfully intercepting and destroying five Indian aircraft.
Among those downed were three Rafale jets, widely regarded as one of the most advanced fighter aircraft in the world. Also destroyed were a MiG-29 and a Sino-Japanese fighter jet.
The attack marked a significant blow to India’s air superiority, which had been bolstered by the recent acquisition of Rafale jets from France.
The loss of these high-tech jets has sent ripples through international defense markets. Chengdu Aircraft Corporation, known for producing the JF-17 Thunder—one of Pakistan’s primary combat aircraft—and the J-10C, has experienced a remarkable rise in its stock price. The surge is being attributed to the increased confidence in Chinese-made aircraft, particularly following the success of the JF-17 Thunder, which played a central role in the Pakistan Air Force’s swift retaliation.
In stark contrast, shares of Dassault Aviation, the French manufacturer of the Rafale jets, have taken a sharp downturn. The French company’s stocks plummeted significantly on the Paris-based Varpi stock market, reflecting market concerns over the poor performance of the Rafale aircraft in the ongoing conflict. The loss of three Rafales has raised questions about the capabilities of these advanced jets, which were meant to enhance India’s aerial defense capabilities.
India had invested billions of dollars into acquiring the Rafale jets, considering them a game-changer for their air force. However, the recent defeat at the hands of the PAF has raised doubts about the aircraft's effectiveness in combat situations, particularly against well-coordinated air operations such as those executed by Pakistan.
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