Chinese stocks surge on back of MSCI rumors

Updated: 2016-05-31 13:50

By Cai Xiao(chinadaily.com.cn)

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Chinese stocks surge on back of MSCI rumors

An investor looks at stock prices in a brokerage house in Hangzhou, East China's Zhejiang province, May 31, 2016. [Photo/IC]

China's stocks jumped the most in two months led by securities companies amid speculation that MSCI Inc may include yuan-denominated shares in its global benchmark indexes next month.

The Shanghai Composite Index surged as much as 2.43 percent to close at 2891.15 points in the first half of Tuesday. The Shenzhen Component Index rose 2.79 percent, while the ChiNext startup index climbed by 3.25 percent.

Western Securities Co, First Capital Securities Co and Shanxi Securities Co climbed by the daily limit to lead brokerages as the top performer in the market.

The odds that mainland Chinese stocks will be included in MSCI's indexes got a boost after the Shanghai and Shenzhen stock exchanges on Friday published rules restricting trading halts, a bane of foreign investors that was used to shut down half the stock market amid a $5 trillion selloff last summer.

On Friday, the National Equities Exchange and Quotations, or the New Third Board, also released the final version of its much-anticipated plan to divide its listed companies into two segments: the innovative market and the basic market. Securities firms are the main market makers who are expected to have big profits.

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