Stocks rally on MSCI optimism

Source: Xinhua | 2017-06-27

SHANGHAI stocks rose yesterday, led by blue chips, after MSCI suggested it could raise the weighting of China’s A shares in its emerging markets index.

The Shanghai Composite Index increased 0.87 percent to 3,185.44 points. The SSE 50 index, tracking the 50 most representative blue-chips on the Shanghai bourse, rose 0.6 percent to an 18-month high.

MSCI Inc Chief Executive Henry Fernandez said the index provider could raise the weighting of yuan-denominated A shares in its Emerging Markets Index, adding 195 mid-sized stocks, Shanghai Securities News reported.

Haitong Securities wrote in a research note: “For now, we are optimistic about the A shares, thanks to better policy and liquidity conditions.”

Electric car-linked shares surged on speculation Tesla would soon announce a local plant. Nari Technology Co jumped 6.17 percent, and Shanghai Baolong Automotive Corp gained 4.13 percent.