Shares of Chengdu Aircraft Corporation (CAC), the Chinese defense manufacturer behind the JF-17 Thunder and J-10C fighter jets used by the Pakistan Air Force, have skyrocketed on the Shenzhen Stock Exchange following reports of a Pakistani air victory over India’s French-made Rafale jets. Since May 5, CAC’s stock has surged by an impressive 63%, gaining CNY 36 per share, with a sharp 20% increase recorded just today, bringing the stock to CNY 95.86.
The rally follows widespread reports confirming that the Indian Air Force lost several assets in a recent high-stakes air combat scenario. Though India’s Defence Ministry has remained silent on specifics, a joint press conference by Indian officials on Sunday acknowledged “losses during operations,” a phrase now interpreted by many defense analysts as unofficial confirmation of the downing of Rafale jets.
On the flip side, shares of Dassault Aviation, the French company behind the Rafale fighter, are suffering. The stock closed at EUR 314.6 on May 9, down by 3.44% or EUR 11.2 over the past week.
The market response reflects global investor sentiment in the wake of combat outcomes. CAC’s rising value is not just a financial story—it’s a strategic signal. With the JF-17 and J-10C proving themselves in real-world combat conditions, confidence in China-Pakistan defense collaboration appears stronger than ever, while Dassault’s dip highlights growing questions around the Rafale’s performance under pressure.
