Shares in Chinese defense companies surged on Monday following reports that Pakistan plans to purchase a significant amount of advanced weaponry from China, according to Bloomberg. The planned deal, which includes J-35 stealth fighter jets, KJ-500 airborne early warning and control aircraft, and HQ-19 ballistic missile defense systems, has fueled investor enthusiasm in the sector.

According to Bloomberg, AVIC Shenyang Aircraft Company, the manufacturer of the J-35, saw its shares hit their daily 10% limit in Shanghai, marking the third consecutive day of gains. Other key players in the Chinese defense industry also experienced substantial gains, with Aerospace Nanhu Electronic Information Technology Co.’s shares jumping as much as 15%.

The news follows a social media post from the Pakistani government on Friday detailing the planned acquisitions including 40 J-35 fifth-generation fighter jets, alongside KJ-500 airborne early warning and control (AEW and C) aircraft, and HQ-19 ballistic missile defence systems. While China’s Ministry of Defence has not yet commented, the potential sale of the J-35 would mark China’s first export of this fifth-generation fighter jet, known for its advanced stealth capabilities. The jet was unveiled at the 2024 Zhuhai Airshow.

This surge in Chinese defense stocks follows a previous claim by Pakistan that Chinese J-10C fighter jets played a role in downing six Indian fighter jets last month. India has downplayed the effectiveness of the weaponry involved, claiming its own military conducted successful precision airstrikes deep into Pakistani territory.