Chinese stocks carved out their biggest gain in two months amid speculation that A-shares could be included in MSCI’s global benchmarks.
The Shanghai Composite ended 3.3 per cent higher, while the technology-focused Shenzhen Composite gained 4.1, the biggest one-day advance for both indices since March 2.
Chinese markets have in general, been quiet of late, with the Shanghai Composite trading in roughly a 300 point range over the past two months. But there’s some speculation that Chinese shares may be included in MSCI’s emerging markets indices, which is prompting some opportunistic buying ahead of that potential decision.
Today, Goldman Sachs upgraded the odds of A-shares being included in the MSCI indices to 70 per cent, from the 50 per cent chance it had given it on April 25.
The MSCI decision is due on June 15. Last year, the index provider chose not to include A-shares in its global benchmarks, only a few days before the Chinese stock market peaked and then capitulated over the summer.