Things are getting hotter between India and Pakistan, and it looks like this is good news for companies in China that make weapons. Their stocks are going up after Pakistan used Chinese-made weapons to shoot down Indian planes.

Pakistan's Foreign Minister, Ishaq Dar, said on Wednesday that Pakistan used Chinese-made J-10C fighter jets when they clashed with India's air force, according to news in Pakistan.

A big Chinese company called AVIC, through one of its parts called AVIC Chengdu Aircraft, makes the J-10C fighter jets that Pakistan reportedly used. Another part of AVIC, called AVIC Aerospace, which makes military planes and helicopters, saw its stocks in Hong Kong go up by over 6%.

And the stocks of AVIC Chengdu Aircraft, which are listed in Shenzhen, China, jumped by as much as 16%! They ended up trading 8.31% higher by late morning in China. On Wednesday, their stocks went up even more, by 17.05%, which was their biggest jump since last October.

The stocks of another Chinese company, China State Shipbuilding Corporation, which builds ships for the military and for regular use, went up a little bit, by 0.4%.

An expert named Yang Zi from a school in Singapore said that "Pakistan buys more weapons from China than any other country, including fighter jets, air defense systems, ships, and drones."

Between 2020 and 2024, over 60% of all the weapons China sold to other countries went to Pakistan, according to a group that studies peace and weapons in Sweden.

Another expert, Seth Jones from a group in the U.S., said, "It's very likely that Pakistan used Chinese planes."

Yang told a TV channel that "this fight shows that Chinese-made weapons are of good quality, because Pakistan's fighter jets and air defense systems did well against India's planes, which were made in France and the Soviet Union."

He also said that even though we don't know if it was planes fighting planes or ground-based missiles shooting down planes, it still shows that Pakistan has "some good abilities, with China's help."

According to Pakistan's Information Minister, Attaullah Tarar, five Indian Air Force jets were shot down as they got close to Pakistani land.

However, India said that the reports of their jets being shot down were not true, calling them "fake news."

India announced early Wednesday that their military had attacked places in Pakistan and the part of Kashmir that India calls Pakistan-occupied Jammu and Kashmir. India's Ministry of Defense said that they attacked nine places where they believed "terrorist attacks" against India were being planned.

This happened after a bad attack last month in Pahalgam, Jammu and Kashmir, where 26 people were killed.

Just a Short Jump?

A strategist named David Roche from a company called Quantum Strategy said that "the rise in China's defense stocks probably means people think that if the war between India and Pakistan gets bigger, China will give weapons to Pakistan and replace anything they lose."

Pakistan and China have been friends since 1951. A group in the U.S. that studies peace said that China has been Pakistan's most important partner for defense since the end of the Cold War.

Jones from the U.S. group also said, "China and Pakistan have been political friends for a long time. They've had economic ties for a long time, and especially in the last few years, their military ties have gotten stronger."

However, Jones also said that the jump in stock prices might just be "something that goes up and then comes back down quickly."

He said that India and Pakistan probably want things to calm down, but it's now up to Pakistan.

"[It's up to Pakistan] whether they want to do more in response to India's attacks, or if shooting down the Indian planes was a big enough win for them," he added.

Reported by FazTimes Media.

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