China's defence stocks jump up to 10% led by AVIC Shenyang as Pakistan announces arms purchase

Shares of Chinese defense companies rallied on Monday after Pakistan said that it intends to buy one of the Asian power's most-advanced fighter jets as a part of major arms purchase. Among the top gainers was
AVIC Shenyang Aircraft
Company, whose stock surged over 10% following Pakistan's announcement that it plans to buy J-35 stealth fighter jet from the Chinese company.
Touted as one of the country's most-advanced fighter jets, the deal is seen as a part of major arms purchase by India's western neighbour.
On Friday, the government of Pakistan in a social media post said that it would acquire 40 J-35 fifth-generation fighter jets, KJ-500 airborne early warning and control aircraft, as well as HQ-19 ballistic missile defense systems.
Shares of AVIC Shenyang Aircraft have remained unbeaten for the past three trading sessions, Today's rally has extended stocks gains to 13% in the past five sessions. While it is a month since the ceasefire between India and Pakistan was implemented, AVIC Shenyang Aircraft shares have jumped 18% in this period.
An armed escalation broke out between India and Pakistan between May 7 and May 10 as India hit several targets in Pak Occupied Kashmir (PoK) to avenge the killings in Pahalgam where 26 innocent tourists were killed.
Live Events
AVIC Shenyang Aircraft has been in the thick of action owing to its J-35 stealth fighter jet
Meanwhile, other Chinese defence stocks also saw a positive rub-off impact as Aerospace Nanhu Electronic Information Technology Co., whose shares jumped as much as 15% on the intraday basis. This counter has rallied 10% in the past five trading sessions.
Aerospace CH UAV Co shares were up by over 1% while Inner Mongolia First Machinery Grp Co was 4% higher.
The J-35 sale to Pakistan would mark China's first export of the fifth-generation jet, which has advanced stealth capabilities for penetrating the airspace of an adversary, a Bloomberg report said. The fighter was developed by Shenyang Aircraft Corporation and publicly unveiled at the 2024 Zhuhai Airshow, it added.
The KJ-500 aircraft would improve Pakistan's radar coverage and its smaller size allows for nimbler use in regional clashes. The HQ-19 surface-to-air missile systems would enhance the country's ability to intercept ballistic missiles.
The deal comes amid persisting tensions between Pakistan and India. The nuclear-armed neighbors clashed several weeks ago, with both sides trading air, drone and missile strikes, as well as artillery and small arms fire along their shared border in early May.
ETMarkets WhatsApp channel
)

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Hindustan Times

30 minutes ago

• Hindustan Times

Market opening bell: Sensex tanks 487 points, Nifty at 24,961 day after US strikes Iran

Benchmark indices Sensex and Nifty declined in early trade on Monday, June 23, day after the US attacked three nuclear sites in Iran, raising concerns over escalating conflict in the Middle East. The market remained volatile in the early trade on Monday.(Pixabay) The 30-share BSE Sensex declined 487 points to 81,920 in early trade. The 50-share NSE Nifty dropped -0.6% to 24,961. The Asian markets, meanwhile, plunged on Monday, while the US stock market closed in red following the US' strike on Iran. On Friday, the Indian benchmark indices had snapped a three-day losing streak, rising over 1%, largely due to US President Donald Trump's decision to delay action in Israel's offensive against Iran.

Time of India

an hour ago

• Time of India

BJP MP Eatala Rajender accuses Revanth Reddy of undermining self-respect, sacrifices of Telangana people; praises PM Narendra Modi's leadership

BJP MP Eatala Rajender HYDERABAD: At the same meeting, BJP MP Eatala Rajender accused chief minister Revanth Reddy of "undermining the self-respect of Telangana people" and failing to uphold the sacrifices made during the statehood movement. He slammed the Congress govt for pushing the state into debt and weakening probes into BRS-era scams. He praised PM Modi for "ensuring India's safety during the Covid-19 pandemic" and for encouraging indigenous vaccine production. "Schemes like PM-Kisan and Ujjwala Yojana are transforming lives of the poor, farmers, and women. We are moving with a vision to make India a developed country by 2047," he said.

Economic Times

an hour ago

• Economic Times

International mutual funds offer 14% average return in 1 year. Are global markets the new hotspot?

International funds invest across a range of geographies, commodities, and global indices. International mutual funds have delivered an average return of 14.5% over the past year, ranking second among all fund categories. Market experts attribute this performance to a strong rally in U.S. tech stocks, a rebound in Chinese equities, and improved investor sentiment across European markets. 'A softer dollar, easing inflation, and a global shift toward rate cuts—already initiated by some central banks—have supported risk assets. While some volatility may persist, the broader orientation is supportive, making this a good time to start SIPs/STPs rather than wait for a better entry,' Sagar Shinde, VP of Research at Fisdom, shared with ETMutualFunds. Also Read | Explained: How thoughtful asset allocation enhances mutual fund performance? Another expert, comparing the returns of international mutual funds with the Nifty50 over the past year and month, noted that these returns are significantly influenced by global geopolitical events, such as Trump-era tariffs, speculation around the upcoming U.S. elections, and shifting trade agreements, making international funds more event-driven and volatile.'Over the long term, Indian markets are much more consistent compared to international funds, which shows that domestic funds have higher return potential with a wide range of categories to pick from,' Chirag Muni, Executive Director, Anand Rathi Wealth Limited, shared with ETMutualFunds. According to Chirag, if we look at the long-term risk adjusted returns of global markets, the U.S. and Indian markets have shown better efficiency compared to China, Hong Kong and Japan and in recent months, international markets have seen sharp, event-driven rallies like China's stimulus-led surge or U.S. trade-related volatility, but these are often were 66 international funds which have marked their presence in the last year, and out of these, 44 gave double-digit returns, 21 gave single-digit returns, and one gave a negative return. DSP World Gold FoF offered the highest return of 70.47% in the same period. Mirae Asset Hang Seng TECH ETF FoF and Mirae Asset NYSE FANG+ETF FoF gave 52.06% and 41.06% returns, respectively, in the said period. PGIM India Global Equity Opp FoF gave the lowest single-digit return of around 0.07% in the mentioned period. Mirae Asset Global Electric & Autonomous Vehicles Equity Passive FOF lost 1.70% in the same reviewing the performance of international funds, Shinde suggests a 10–15% allocation for optimal diversification. He recommends keeping the U.S. as the core exposure, citing its innovation and strong earnings, while viewing China as a tactical or contrarian bet due to its low valuations and recent policy support. Also Read | Up 29% in 5 months! Should you invest or avoid gold mutual funds? 'These funds are best used for long-term allocation (5+ years). SIPs/STPs are more prudent in the current environment, helping average out market and currency volatility better than lump sum investing,' he refraining investors from investing in international funds and advising to shift focus on a well-diversified mix of domestic equity funds across categories and sectors, Chirag adds that if one looks for global diversification in the portfolio can explore only up to 5 -10% of the overall portfolio.'International funds can offer exposure to global opportunities, but given its track record for volatility and uneven performance across global markets, investors are advised not to rely heavily on them. It is more suitable to do an SIP in diversified domestic equity funds over the long term, as they provide stronger long-term growth and better risk-adjusted returns. Trying to time global markets or chase short-term rallies is not advisable, as such moves are often driven by unpredictable events and can lead to poor investment outcomes,' Chirag the last three months, international funds have delivered an average return of 5.61%, and 8.58% over the past six months. DSP World Gold FoF topped the charts across both timeframes. Over the past three years, the best-performing economies included the US, Taiwan, and Nasdaq, while Greater China and some US-focused funds lagged during the same period. Post these funds offering single-digit average return in the short-term, Shinde mentions that the outlook for international funds remains constructive but nuanced and as several central banks—especially in Europe and emerging markets—have already begun their rate-cutting cycles, which supports global liquidity and risk assets. 'At the same time, global equities benefit from resilient growth, improving earnings, and attractive valuations outside the US. However, headwinds like rising trade tensions, tariffs, and geopolitical risks could cause intermittent volatility. Overall, international funds remain a valuable long-term diversification tool, with opportunities across the US, China, and selective global themes,' Shinde sharing India's strong economic outlook, IMF projections, RBI rate cut, and with a stable fiscal deficit projected at 4.4% for FY26 and strong tax revenues, macro fundamentals remain solid, Chirag advises investors not to go for international funds. Also Read | 14 equity mutual funds offer over 30% CAGR in 3 years. Are there any included in your portfolio? International funds invest across a range of geographies, commodities, and global indices. Markets like the NYSE, NASDAQ, the broader US economy, and Taiwan delivered strong performance, while regions such as Hang Seng and Greater China underperformed. Ultimately, a fund's returns hinge on the specific geography it's exposed means you should pay extra attention to your investments in international funds. Pay extra attention to which geography or indices you are investing in. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and twitter handle.