Chinese shares rise on MSCI’s inclusion news
CHINA stocks rose yesterday as investors were cheered after MSCI said it would include 234 Chinese A-shares in the MSCI China Index.
The Shanghai Composite Index added 0.57 percent to 3,192.12 points, while the smaller Shenzhen Composite Index gained 0.72 percent to 10,747.99 points and the Shenzhen-based startup board ChiNext rose 1.48 percent to 1,858.01 points.
Global index provider MSCI said yesterday that the 234 China A-shares will represent aggregate weight of 1.26 percent and 0.39 percent respectively in the MSCI China Index and the MSCI Emerging Markets Index.
The A-shares to be included in MSCI's indices from June 1 are Kweichow Moutai, the Industrial and Commercial Bank of China, Bank of China, China Construction Bank and Guosen Securities.
MSCI said any stock that was halted from trading for over 50 straight trading days would not be included in its index.
The MSCI news marked a key development in the opening of China’s market to overseas investors, said Chen Guo, chief strategic analyst at Essence Securities.