The launch of an intercontinental ballistic missile by China is a regular military exercise, which is absolutely legitimate and reasonable, Defense Ministry spokesman Zhang Xiaogang said on Thursday.
The Chinese People's Liberation Army (PLA) Rocket Force launched an intercontinental ballistic missile (ICBM) carrying a simulated warhead into the high seas in the Pacific Ocean on Wednesday morning, according to the Ministry of National Defense.
"The PLA Rocket Force carrying out the ICBM launch experiment is to check the performance of weapons and equipment, as well as the training level of troops. As a regular military training activity, it is completely legitimate and reasonable," Zhang said at a press conference in Beijing.
Then he illustrated China's nuclear policy.
"China's nuclear policy is highly stable, consistent and predictable. China always follows a policy of 'no first use' of nuclear weapons, a nuclear strategy of self-defense, and a principle of no arms race. The country has also committed to not using nuclear weapons against non-nuclear weapon states and nuclear-weapon-free zones, as well as maintaining its nuclear force at the minimum level required for national security," Zhang noted.
China launching intercontinental ballistic missile is regular military exercise: spokesman
China's stock markets ended on a high note on Thursday, fueled by optimism following the announcement of a raft of stimulus policies.
The Political Bureau of the Communist Party of China Central Committee called on Thursday for intensified economic efforts, including implementing substantial interest rate cuts and promoting the stabilization of the property market, as China strives to meet its annual economic and social development targets.
Earlier this week, the government announced a broader-than-expected policy package to galvanize the economy's rebound. These policy measures include reducing the reserve requirement ratio for banks and mortgage rates for existing homes, as well as introducing new monetary programs to boost the capital market, among other initiatives.
The announcements have given a boost to Chinese stock markets.
The benchmark Shanghai Composite Index closed Thursday up 3.61 percent at 3,000.95 points, the Shenzhen Component Index ended 4.44 percent higher at 8,916.65 points, and the blue-chip CSI 300 rose 4.23 percent to 3,545.32 points.
The combined turnover of stocks covered by the Shanghai Composite Index and Shenzhen Component Index stood at around 1.16 trillion yuan (about 164.88 billion U.S. dollars), surpassing one trillion yuan for the second consecutive day.
Property developers, food and beverage makers and tourism and hotel operators were among the big winners on the markets. Some real estate stocks surged up to the daily 10-percent limit, food and beverage stocks rose 5.96 percent, and the tourism and hotel industry grew 5.17 percent.
The increases have boosted market confidence.
"This is really exciting and it makes people happy. I increased my shareholdings," said Mr. Yuan, an investor.
"This is very good and positive news, because market sentiment has been low for a long time. I will put more money in an automatic investment plan," said Mr. Deng, another investor.
Some market analysts said that China's A-shares, referring to yuan-denominated stocks of China-based companies that are traded on the Shanghai Stock Exchange or the Shenzhen Stock Exchange, have surged for a third day in a row, which has restored investor confidence, and the rebound is expected to continue.
They noted that the three-day winning streak also serves as a boon to Shenzhen's small and medium-sized enterprises and scientific and technological companies.
"The stock market recovery is significant good news for Shenzhen's small and medium-sized enterprises and scientific and technological companies. On the one hand, it increases the market value of listed companies and boosts investors' confidence, which helps promote the enterprises' development. On the other hand, the Political Bureau of the Communist Party of China Central Committee's meeting vows more support to foster new quality productive forces. So scientific and technological innovation enterprises can receive more support, thus bringing new opportunities to unlisted small and medium-sized enterprises and scientific and technological companies in Shenzhen," said Yang Delong, chief economist at Qianhai Open Source Fund.
Hong Kong stock markets also extended gains on Thursday with the benchmark Hang Seng Index up 4.16 percent to close at 19,924.58 points, a fresh record this year.
The Hang Seng China Enterprises Index surged 4.75 percent to end at 7,086.7 points, and the Hang Seng Tech Index jumped 7.27 percent to close at 4,209.71 points.
Hong Kong-listed Chinese mainland real estate stocks soared, with many posting increases of more than 20 percent, while tech, internet and consumer goods stocks also registered gains.
Chinese stocks extend gains on stimulus policies
