Shanghai stocks flat ahead of MSCI move

Hu Yumo
The city's main equity benchmark was little changed on the eve of MSCI's addition of more A-shares to its emerging markets index.
Hu Yumo

Shanghai stock prices changed little on Tuesday, as investors took a wait-and-see attitude ahead of the MSCI's further A-share inclusion. 

The Shanghai Composite Index added 0.03 percent to close at 2907.06 points.

Shares of electronics companies, consumer enterprises and tourism firms were among the day's biggest gainers.

Global index provider MSCI said earlier this month that it would increase the weightage of Chinese A-shares in its emerging markets index to 4.1 percent, from 2.55 percent, effective at market-open on November 27.

Reuters reported robust northbound inflows of more than 20 billion yuan (US$2.84 billion) through the Hong Kong-Shanghai and Hong Kong-Shenzhen Stock Connect programs on Tuesday, though analysts said the market impact of the MSCI weightage increase was limited.

UBS Securities China Equity Strategy team estimated that this could bring a potential net passive inflow of US$5.8 billion into the A-share market.

Zhejiang Ausun Pharmaceutical Co Ltd added 3.26 percent to 18.07 yuan and Juewei Food Co Ltd climbed 3.24 percent to 45.83 yuan.

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