Chinese Investors Resume Buying After Early Coyness
Tang Shihua
/SOURCE : yicai

 (Yicai Global) Feb. 12 -- China's stock markets extended their gains this morning as major market indexes touched a multi-month high.
 

These indexes overcame early morning profit-taking pressure after strong advances yesterday to restart their upward trajectory and close on a high note at the lunch bell.
 

The benchmark Shanghai Composite Index rose 0.72 percent to 2,673.13 points as the curtain fell, nudging a level not seen since the middle of November. The Shenzhen Component Index clambered to 8,024.90 points, up 1.34 percent, while small-cap technology stocks held their lead. The ChiNext Price Index, which tracks growth enterprises in Shenzhen, ended up 1.48 percent at 1,335.52 points.
 

New York-based hedge-fund indexer MSCI [NYSE:MSCI] said overnight it will add several more local market securities to its index investment portfolios starting next month.
 

While the news that more foreign capital will flow into the country after the addition came as welcome news to market participants, local investors' initial reaction was nonetheless lukewarm at best.
 

Most of the new add-ons recorded positive movement in the morning session, but yielded some of the ground they had gained at the opening bell, with follow-up buying disappointingly running out of steam.


Editor: Ben Armour

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Keywords: Stock Market , Shanghai Composite Index , Shenzhen Component Index , ChiNext Price Index