Chinese mainland defense stocks finished higher on Tuesday, buoyed by the People’s Liberation Army (PLA)’s preparations and drills amid the possible visit of US House Speaker Nancy Pelosi to the island of Taiwan.
Amid growing geopolitical tensions, Chinese mainland stocks weakened on Tuesday. The benchmark Shanghai Composite Index dropped by 2.26 percent, while the smaller Shenzhen index down 2.37 percent. A total of 4,400 stocks fell, with shares related to metals, securities and real estate leading the drop. In Hong Kong, the Hang Seng Index slid 2.65 percent by 3:30 Tuesday.
However, Chinese defense stocks saw a strong performance in Tuesday’s market, with Anhui Great Wall Military Industry Co reaching its daily cap of 10 percent to close at 13.37 yuan ($1.98), Bestway Marine & Energy Technology Co trading on Nasdaq-like ChiNext board up 15.09 percent and Guangzhou Hangxin Aviation Technology Co up 14.07 percent.
Amid a tense geopolitical atmosphere, the weighted stock index of Taiwan stock market fell 1.57 percent by 3:30 pm Tuesday, extending Monday’s losses.
Asian markets also tumbled on Tuesday. Japan’s Nikkei 225 was down by 1.42 percent while MSCI’s broadest index of Asia-Pacific shares retreated 1.46 percent.
Chinese Foreign Ministry spokesperson Zhao Lijian on Monday reiterated a warning that the US should not arrange a visit by US House Speaker Nancy Pelosi to the island of Taiwan, stressing that it would lead to serious consequences.
The PLA Eastern Theater Command has recently organized naval aviation force to conduct mock air combat training after midnight, aiming to strengthen pilot ability to quickly enter combat status for abnormal situations at any time.
The Eastern Theater Command also released a video on Monday showing advanced weapons and footage of intense training exercises.
(Global Times)
