Foreign Investors Bought USD316 Million in China Shares Minutes Before MSCI Inclusion

Foreign Investors Bought USD316 Million in China Shares Minutes Before MSCI Inclusion

Liao Shumin

Date: Fri, 06/01/2018 - 15:18 / source:Yicai
Foreign Investors Bought USD316 Million in China Shares Minutes Before MSCI Inclusion
Foreign Investors Bought USD316 Million in China Shares Minutes Before MSCI Inclusion

(Yicai Global) June 1 -- Foreign investors bought more than CNY2 billion (USD316 million) worth of shares in MSCI-bound mainland Chinese companies within five minutes of the market closing yesterday, making up 18 percent of the day’s purchases via the Shanghai-Hong Kong Stock Connect.

Shanghai-listed shares joining the MSCI’s Emerging Markets Index today rose an average 1.8 percent throughout yesterday, on par with the rest of the exchange, data from the bourse shows. More than 90 percent of 146 sample stocks climbed, though none hit the daily limit and only seven jumped more than 5 percent as the trading volume leapt 14 percent on the day to CNY76 billion (USD12 billion).

Swiss banking group UBS expects the inclusion of mainland shares in the index to pour USD18.5 billion into the capital market during the first phase, which gives the 234 Shanghai- and Shenzhen-listed shares an inclusion factor of 2.5 percent. It predicts more money will flow in when the inclusion factor is doubled on Aug. 31.

Anticipation for the landmark moment gave the Shanghai-Hong Kong Stock Connect its biggest capital influx in a single day, nearly CNY11.3 billion, compared with a daily average of CNY4.4 billion in the past month.

The Shanghai bourse hosted an event to celebrate the landmark moment with representatives from the local government, MSCI, Shenzhen Stock Exchange and more than 80 domestic and foreign financial institutions.

Editor: James Boynton

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Keywords: MSCI, China Mainland Shares, emerging markets Index