BEIJING: Chinese shares rose to the highest level in seven years in volatile trade as bets MSCI Inc will include mainland shares in its indexes overshadowed weaker shipments data. The ChiNext index of smaller companies tumbled.
Bank of Communications Co led gains among financial shares. CRRC Corp, formed by merging rail companies CSR Corp. and China CNR Corp, jumped 10 per cent in Shanghai on its first day of trading. Shenzhen Infogem Technologies Co slumped by the 10 per cent daily limit, pacing declines on the ChiNext, which sank 4.9 per cent.
The Shanghai Composite Index rose 0.9 per cent to 5,068.47 at the break, heading for its highest close since January 2008 and extending last week’s 8.9 per cent rally. Data Monday showed China’s exports declined in May for a third straight month and imports slumped for the seventh. MSCI will announce on Tuesday in New York whether to add China’s locally traded shares in its equity benchmarks.
“The market is looking ahead to whether MSCI will include A shares in its emerging-market indexes and that could create some wild swings in Chinese shares,” said Bernard Aw, a Singapore-based market strategist at IG Asia Pte Ltd.
