Shares of leading Chinese defense firms surged on Monday following official confirmation from Pakistan regarding its acquisition of advanced J-35 stealth fighter jets, alongside other significant military hardware. This landmark deal, marking China’s first-ever export of its fifth-generation stealth fighter, has instilled strong investor confidence in China’s growing prowess in the global arms market.
AVIC Shenyang Aircraft Co., the manufacturer of the J-35, saw its shares hit the daily 10% trading limit on the Shanghai exchange, extending a bullish trend for the third consecutive session. Other defense-related companies, including Aerospace Nanhu Electronic Information Technology Co., also experienced significant gains, with some rising as much as 15%.
The rally was triggered by a social media post last Friday from Pakistan’s Prime Minister Shehbaz Sharif, officially confirming the intent to purchase up to 40 J-35 fifth-generation stealth fighter jets. The comprehensive deal also includes KJ-500 airborne early warning and control (AEW&C) aircraft and HQ-19 ballistic missile defense systems, representing a substantial upgrade to Pakistan’s air combat and defense capabilities.
Pakistani officials have stated that pilots are already undergoing training in China, with initial deliveries of the J-35s expected as early as August. Developed by Shenyang Aircraft Corporation and publicly unveiled at the 2024 Zhuhai Airshow, the J-35A is China’s second fifth-generation aircraft after the Chengdu J-20. It boasts cutting-edge features including active electronically scanned array (AESA) radar, advanced avionics, electro-optical targeting systems, and a reduced radar cross-section for stealth operations. The aircraft is designed for long-range and deep-strike missions and is compatible with advanced PL-15 and PL-17 air-to-air missiles.
Defense analysts believe this acquisition will significantly enhance Pakistan’s strike capabilities and could potentially shift regional air power dynamics, particularly in the context of ongoing tensions with India. The J-35 is expected to replace Pakistan’s older fleets of F-16s and Mirages, strengthening its ability to counter modern air defenses.
While China’s Ministry of Defense has yet to officially comment on the announcement, the deal solidifies China’s position as Pakistan’s most trusted military partner, with a significant majority of Pakistan’s arms imports now sourced from Beijing. This high-stakes arms deal underscores Pakistan’s commitment to modernizing its military and highlights China’s growing ambitions to export its advanced defense technologies on the global stage.
