Stock of JF-17 and J-10C Manufacturer Soars 63% Amid Rafale Jet Loss Reports; Dassault Shares Decline
By Business Desk | Published May 12, 2025 | 12:27 PM
Shares of Chengdu Aircraft Corporation (CAC), the Chinese aerospace company behind Pakistan’s JF-17 Thunder and J-10C fighter jets, surged dramatically by 63% in one week on the Shenzhen Stock Exchange (SZSE). This sharp rise followed reports that Pakistan shot down India’s French-made Dassault Rafale fighter jets during recent air clashes.
As of 9:45 AM Pakistani time on May 12, CAC shares hit CNY 95.86, marking a 20% jump in a single day and reflecting growing investor confidence in CAC’s defense technology amid escalating regional tensions.
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In contrast, Dassault Aviation, the French manufacturer of the Rafale jets, saw its stock fall by 3.44% over the same period. Dassault shares closed at EUR 314.6 on May 9, down from EUR 325.8 on May 5, as the Indian Air Force acknowledged losses of aircraft, including Rafale jets, during recent combat operations.
During a joint press conference, Indian defense officials admitted to losing assets in air combat but withheld detailed information. The Indian Defence Ministry’s cautious language-“losses are part of combat”-has been widely interpreted as confirmation of significant damage to its fleet, including Rafale jets.
This divergence in stock performance highlights shifting investor sentiment: confidence is rising in Chinese defense manufacturers like CAC, while doubts grow over the Rafale’s battlefield performance. Analysts suggest the developments could influence future defense procurement and regional security dynamics.
As tensions between India and Pakistan continue, the aerospace and defense sectors remain under close watch by investors worldwide.