China shares jump on rising foreign interest; Hong Kong benefits
* CSI300 +2.6 pct; SSEC +2.4 pct; HSI +1.2 pct
* Foreign interest in China shares rise ahead of MSCI decision
* Financial shares lead China rally
SHANGHAI, May 31 (Reuters) - China stocks jumped to a three-week high on Tuesday, with financials leading a broad rally as investors bet that MSCI will add mainland shares to its index for the first time next month.
The blue-chip CSI300 index rose 2.6 percent, to 3,147.13 points by the lunch break, while the Shanghai Composite Index gained 2.4 percent, to 2,891.15 points.
Such excitement on the mainland - rarely seen over the past month - spilled into Hong Kong, where main indexes rose more than 1 percent.
The CSOP FTSE China A 50 ETF - the largest offshore exchange-traded fund that enables direct foreign investment to Chinese shares - saw a net capital inflow of about 2 billion yuan ($303.9 million) on Monday, the largest single-day inflow in the past year, the ETF's manager announced after the market close.
"We are very pleased to see the return of global institutional investors to the Chinese A-share market," Ding Chen, CEO of CSOP Asset Management Ltd, said in an e-mailed statement.
In another sign of rising foreign interest in mainland shares, there was a net inflow of 2.4 billion yuan on Monday into the Chinese market through the north-bound leg of the Shanghai-Hong Kong Stock Connect, the biggest one-day inflow in 1-1/2 months. Continuación...