Military concept stocks up in China as Japan buys Dioyutais
Staff Reporter 2012-09-11 15:49 (GMT+8)
A PLA naval drill. Some of China's military concept stocks went up by their daily limit on the news of the deal for the disputed islands. (File photo/Xinhua)
Chinese military concept stocks rocketed on Sept. 11 after the move by the government of Japan to buy the disputed Diaoyutai (Diaoyu or Senkaku) islands in the East China Sea.
A deal reportedly worth US$26 million was struck for Japan's central government to buy the islands from their private owner in order to nationalize them. The islands are also claimed by China and Taiwan and have been at the center of heightened tension between China and Japan in recent weeks.
Stocks of military concept companies such as ship and airplane manufacturers had a strong performance after the stock market opened on Tuesday. Shares in shipmakers increased by 7.9% on average, with three shipmakers seeing their stock rise by the daily limit, including CSSC Jiangnan Heavy Industry.
China's foreign ministry said the islands have been the inherent territory of China from ancient times based on legal foundations and historical evidence. Any move by Japan to nationalize the islands will be illegal and invalid, the ministry said.
The Chinese government also announced the baselines of its territorial sea including the islands on Sept. 10 to further assert its claim that the islands belong to China and that the government will stand a firm stand to protect its sovereignty and territory.
