Rafale maker Dassault shares drop; China's J-10 manufacturer sees stock surge

The stock of Dassault Aviation, the manufacturer of the Rafale jets, has seen a sharp decline in the European stock market, following reports that the Pakistan Air Force had shot down Rafale jets during an operation against Indian aggression.

According to the business daily ‘Live Mint’, Dassault’s shares dropped by 7% on May 12, 2025, reaching EUR 292. Throughout the day, the stock fluctuated between EUR 291 and EUR 295.

Meanwhile, shares of Chengdu Aircraft Corporation (CAC), the Chinese aerospace company behind the J-10 fighter jets, saw a significant surge, rising by 20%. CAC’s stock reached Chinese Yuan 95.86, marking a 60% increase from the previous week.

Live Mint reported that Dassault’s shares has fallen over 10 per cent in the past five trading sessions.

Anshul Jain, head of research at Lakshmishree Investment and Securities, stated that heightened volatility driven by news of India-Pakistan tensions has contributed to the downward trend.

India and France recently signed a key deal to procure 26 naval variants of Rafale fighter jets at a cost of around ₹63,000 crore for the Indian Navy.

Stocks of Chengdu Aircraft Corporation

The stock price of Chengdu Aircraft Corporation (CAC) hit a high of 88.88 yuan in mainland China’s stock market, marking a 50% increase in just three days from the closing price of 59.23 yuan on May 6.

However, CAC’s stock returned some of its gains on May 9 due to profit-taking sales, closing at 79.88 yuan, still up 35% from May 6.

The J-10, a single-engine lightweight fighter developed by China’s Chengdu Aircraft Industry Group and nicknamed the “Fierce Dragon” (Menglong), completed its initial flight in 1998 and was inducted into the Chinese People’s Liberation Army Air Force in 2003. The J-10C model was successfully electrified in 2018, and exports to Pakistan began in 2022.

Read More: PAF’s aerial victory: How Pakistani jets shot down Indian Rafale

Earlier, Air Vice Marshal Aurangzeb Ahmed detailed the events of the aerial clash between Pakistan and India, highlighting the downing of Rafale jets by the Pakistan Air Force (PAF).

Air Vice Marshal Aurangzeb Ahmed in an important press briefing along with Director General Inter Services Public Relations (DG ISPR) and senior officer from Pakistan Navy (PN) recalls the air battle, which lasted over an hour.

The air battle began when India fired high-speed projectiles, three of which landed within its own territory. Ahmed shared how PAF radar swiftly detected these projectiles, and one was headed towards Pakistan but was technically intercepted.