June 26, 2017 / 4:27 AM / a year ago

China blue-chips hit 18-mth high on MSCI inclusion hopes; HK also up

* SSEC 0.6 pct, CSI300 1.0 pct, HSI 0.4 pct

* Blue-chip index at record high since 2016

* MSCI to raise weighting of China A-shares

SHANGHAI, June 26 (Reuters) - China stocks rose on Monday morning, led by the blue-chip index advancing to a record high since 2016, after the MSCI chief said the index provider could raise its weighting of China A-shares.

The Shanghai SE 50 Index, an index tracking the 50 most representative blue-chips in the Shanghai Stock Exchange, moved up 0.5 percent to an 18-month high. The index has gained 11.2 percent in 2017, versus a gain of 2.4 percent in the benchmark SSEC.

The CSI300 index rose 1.0 percent, to 3,658.73 points at the end of the morning session, while the Shanghai Composite Index gained 0.6 percent, to 3,178.15 points.

U.S. index provider MSCI Inc Chief Executive Henry Fernandez said that in the future the MSCI Emerging Markets Index could raise its weighting of China A-shares, potentially adding 195 mid-sized stocks, Shanghai Securities news reported.

MSCI’s decision to add 222 China-listed large-cap stocks to its Emerging Markets Index (EMI), tracked by around $1.6 trillion, has already fuelled a buying spree for blue-chips on the mainland.

The decision is widely expected to bode well for the long-term development of A-share market.

“For now we are optimistic about the (A-share) market, which has been picking up recently, aided by better policy and liquidity conditions,” Haitong Securities wrote in a report.

Listed companies in the A-share market are also expected to record rapid profit growth in the second quarter and for the full year, the brokerage added.

Sectors rallied across the board in the morning. the top performing real estate sector jumped 3.1 percent to a six-month high, led by bellwether China Vanke which surged 6.4 percent after a 10 percent gain the previous session.

The CSI300 bank index gained 0.6 percent, after the nation’s top banking regulator told banks to push forward with reform.

The market showed scant reaction to news that China meted out a nearly 700 million yuan ($102.33 million) punishment to a Russian-controlled high-frequency trading firm for futures market manipulation on Friday.

Hong Kong stocks followed other Asian markets higher on optimism about global growth.

The Hang Seng index added 0.4 percent, to 25,768.13 points.

The Hong Kong China Enterprises Index gained 0.5 percent, to 10,485.29. ($1 = 6.8405 Chinese yuan renminbi)

Reporting by Luoyan Liu and John Ruwitch; Editing by Simon Cameron-Moore

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below