BUSINESS Mainland defense shares surge amid Pelosi's possible Taiwan visit; Taiwan stocks slump

BUSINESS

Mainland defense shares surge amid Pelosi's possible Taiwan visit; Taiwan stocks slump

Global Times

12:58, August 02, 2022

A fighter jet attached to a naval aviation brigade under the PLA Eastern Theater Command soars into the sky during a flight training mission on December 16, 2021. Photo:China Military

A fighter jet attached to a naval aviation brigade under the PLA Eastern Theater Command soars into the sky during a flight training mission on December 16, 2021. (Photo: China Military)

Chinese defense stocks started 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.

Chinese A-share market fell in the morning session, with the Shanghai Composite Index dropping 2 percent and the Shenzhen Component Index losing over 2.29 percent. A total of more than 4,500 stocks fell, with shares related to electricity, automobiles, education and tourism leading the drop.

However, defense stocks started higher on Tuesday, with Chinese leading shipbuilder Jianglong Shipbuilding Co up by 14.3 percent, Bestway Marine & Energy Technology Co up 8.11 percent and Guangzhou Hangxin Aviation Technology Co up 17 percent by 9:40 am.

Amid tense atmosphere, the weighted stock index of Taiwan stock market fell 2 percent on Tuesday morning, extending Monday's losses.

Asian markets opened sharply lower on Tuesday. Japan's Nikkei 225 was down by 1.45 percent while Australia ASX All Ordinaries indexes dropped 0.42 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.

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