China’s defense industry is getting a DeepSeek moment

Investors were drawn into the tale of a rare confrontation between modern Chinese warplanes and Western jets after Pakistan claimed it used Chinese J-10C planes to neutralize five Indian jets, including Rafales. While the evidence is still unclear, this event piqued interest as Avic Chengdu Aircraft, the J-10C manufacturer, saw a 20.6% rise in stock prices, contrasting sharply with Dassault Aviation, the Rafale maker, which dropped 6.2%. The story underscores how geopolitical tensions can influence investor sentiment and market dynamics.