China Defense Stocks Surge as Pakistan Uses J-10C Jets in India Clash

As tensions between India and Pakistan rise, Chinese defense stocks are soaring. This is following reports that Pakistan used China-made J-10C jets to fight off Indian aircraft.

On Wednesday, Pakistan’s Foreign Minister Ishaq Dar said during a confrontation with the Indian air force, the J-10C jets had been used, per state media.

The J-10C fighter jets were developed by AVIC Chengdu Aircraft Company, a subsidiary of China’s AVIC, (Aviation Industry Corporation of China). After news broke about the J-10C’s use, AVIC Aerospace Hong Kong-listed stock (which makes military aircraft and helicopters) shares soared over 6%.

India’s AVIC Chengdu Aircraft, listed in Shenzhen, had shares jump over 16%, with shares trading up 8.31% at 11:40 a.m. local time. On the day before news broke, shares rose 17.05%, which was the largest gain since October 2024.

Lastly, even China State Shipbuilding Corporation, which makes military vessels and civilian ones, had shares jump 0.4%.

Experts believe the rise in defense stocks is connected to Pakistan’s past defense relationship with China. Per the Stockholm International Peace Research Institute (SIPRI), over 60% of China’s arms exports to Pakistan emerged from 2020 to 2024.

Pakistan is the largest buyer of Chinese arms,” said Yang Zi, a research fellow at Singapore’s S. Rajaratnam School of International Studies.

Seth Jones of the Center for Strategic and International Studies (CSIS) added that it’s “certainly likely” Pakistan used Chinese jets in the conflict.

Yang also noted that this clash may boost the reputation of Chinese-made weapons, especially when used against India’s French- and Soviet-era aircraft.