Chinese defense stocks face wild swings amid arms export speculation

Military equipment makers fall back after rally fueled by Pakistan purchase

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A scale model of the J-35 stealth fighter is displayed at the China International Aviation and Aerospace Exhibition, or Airshow China, in Zhuhai in November 2024. Pakistan's use of Chinese military equipment "could shatter the perception" that China's weapons are inferior. © Reuters

WATARU SUZUKI

SHANGHAI -- China's defense stocks are fluctuating wildly amid reports of growing interest in the country's military equipment from Asian neighbors.

Shanghai-listed shares of AVIC Shenyang Aircraft, the maker of J-35A fighter jets, fell 3.2% on Tuesday after jumping 9.3% on Monday. The surge had been in response to Pakistan's reported plans to purchase J-35As last week. The fifth-generation stealth fighter flew at China's biggest aviation expo in the southern city of Zhuhai in November.

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