You are here

China: Stocks decline after MSCI defers adding stocks to indexes

BeijingStocks100615.jpg
China's stocks fell for a second day after MSCI Inc held off from adding mainland shares to its benchmark indexes.

[HONG KONG] China's stocks fell for a second day after MSCI Inc held off from adding mainland shares to its benchmark indexes.

CRRC Corp, formed by merging Chinese rail companies CSR Corp and China CNR Corp, slumped more than 9 per cent for a second day as industrial companies retreated before the release of production data on Thursday. Huaneng Power International Inc dropped 2.7 per cent. Technology and consumer companies advanced.

Hong Kong's Hang Seng Index fell 1.1 per cent after officials said a woman was being tested for fever following her return from South Korea, where cases of Middle Eastern respiratory syndrome have been reported.

The Shanghai Composite Index slipped 0.2 per cent to 5,106.04 at the close. A 150 per cent rally for the gauge over the past year has sent valuations to the highest level since 2009.

sentifi.com

Market voices on:

MSCI opted to work with the nation's securities regulator to try to overcome remaining obstacles to inclusion and said a decision on inclusion may come at any time.

"We believe that A-share sentiment will be hurt by MSCI's decision," Roger Xie, China equity strategist at HSBC Holdings Plc in Hong Kong, wrote in a report. "The news could trigger some profit-taking."

The Shanghai index has jumped the most among major global benchmarks over the past year amid record margin debt and speculation the government will step up stimulus efforts. The measure is valued at 19.3 times 12-month projected earnings, the highest level since December 2009, according to data compiled by Bloomberg.

The CSI 300 Index declined 0.2 per cent. Hong Kong's Hang Seng China Enterprises Index slid 2 per cent at 3:19 p.m., while the Hang Seng Index decreased 1.5 per cent.

The city's health department said a 22-year-old woman with a fever was put in an isolated hospital ward after returning from Seoul. Hong Kong's government June 8 asked the public to avoid unnecessary travel to South Korea amid the spread of Mers cases.

BLOOMBERG

grab

Receive $80 Grab vouchers valid for use on all Grab services except GrabHitch and GrabShuttle when you subscribe to BT All-Digital at only $0.99*/month.

Find out more at btsub.sg/promo

Powered by GET.comGetCom