Islamabad, May 7, 2025: The shares of China’s Chengdu Aircraft Corporation (CAC) surged nearly 18% on the Shenzhen Stock Exchange following reports that the Pakistan Air Force (PAF) had successfully downed multiple Indian Rafale jets in a high-tension air encounter.
This dramatic market reaction underscores the rising global relevance of Chinese-made fighter jets, particularly the JF-17 Thunder, jointly developed by CAC for the PAF.
By 9:45 AM PKT, CAC’s shares skyrocketed to CNY 71.08, marking a gain of CNY 11.9 or 18%, driven by growing investor confidence in Chinese aerospace technology amid South Asia’s escalating defense dynamics.
Even two hours later, the bullish momentum held strong, with shares trading at CNY 68.88, still up 16.29%.
In stark contrast, Dassault Aviation—the French manufacturer of India’s Rafale jets—faced a market blow, as its shares at the Paris Stock Exchange tumbled by over 5% in early trading.
As of 11:53 AM PKT, Dassault’s stock was down EUR 5.40 or 1.64%, trading at EUR 324.
According to an official statement, Pakistan’s Defense Minister confirmed the downing of five Indian aircraft during the aerial clash, fueling patriotic sentiment and investor enthusiasm back home.
Unverified reports suggest as many as six Rafale fighter jets may have been neutralized, further intensifying regional tensions and spotlighting the capabilities of locally backed military hardware.
Industry analysts suggest this incident could tip the balance of military procurement discussions across several developing nations.
“We may now see a greater interest in cost-effective, battle-proven platforms like the JF-17, especially in regions where budget and reliability go hand-in-hand,” noted a Beijing-based defense analyst.
