September 26, 2018 / 7:34 AM / 7 months ago

REFILE-China shares gain on FTSE Russell entry hopes, potential MSCI weighting raise

(Refiles to fix formatting issue)

* SSEC up 0.9 pct near 2-month high

* MSCI may quadruple weighting of China A-shares in global indexes

* FTSE Russell expected to include China shares this week

* Consumer firms jump on holiday demand

SHANGHAI, Sept 26 (Reuters) - China stocks closed higher on Wednesday as global index provider MSCI said it will consider quadrupling the weighting of Chinese big-caps in its global benchmarks and as FTSE Russell is expected to include Chinese shares in its benchmark this week. ** At the close, the Shanghai Composite index was up 0.9 percent at 2,806.81 points, its highest close since Aug. 1. ** The blue-chip CSI300 index finished 1.1 percent higher, with its financial sector sub-index gaining 0.94 percent. The real estate index rose 0.02 percent and the healthcare sub-index added 1.8 percent. ** Consumer firms rallied on better-than-expected demand during the Mid-Autumn Festival. A sub-index of the CSI300 index tracking consumer firms ended 3.3 percent higher, with liquor maker Kweichow Moutai ending 4 percent higher. ** After three years of saying “no”, global index provider FTSE Russell is widely expected to welcome mainland Chinese shares into its major benchmarks this week, a move that could drive billions of foreign dollars into a market hit by a trade war. ** Global index provider MSCI said it will consider quadrupling the weighting of Chinese big-caps in its global benchmarks and also proposed adding mid-caps and shares listed on Shenzhen’s start-up board ChiNext. ** Top Chinese steelmaker China Baowu Steel Group is in talks to take over rival Magang Group, three sources familiar with the discussions said, a deal that would help entrench the nation’s position as a serious competitor in global steel markets. ** Baoshan Iron & Steel, Baowu’s listed unit, ended 1.2 percent higher while Maanshan Iron & Steel Co Ltd , Magang’s listed unit, gained 1.0 percent. ** Shares in Huatai Securities Co Ltd rose 1.2 percent after the company said it plans to list in London, potentially becoming the first Chinese company to sell shares under the long-awaited Shanghai-London Stock Connect.

** The smaller Shenzhen index ended 0.73 percent firmer and the start-up board ChiNext Composite index was higher by 1.06 percent. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.27 percent while Japan’s Nikkei index closed up 0.39 percent. ** At 07:04 GMT, the yuan was quoted at 6.8765 per U.S. dollar, 0.23 percent weaker than the previous close of 6.861. ** The largest percentage gainers in the main Shanghai Composite index were Guanghui Logistics Co Ltd, up 10.07 percent, followed by Jiangyin Hengrun Heavy Industries Co Ltd , up 10.03 percent and Shandong Donghong Pipe Industry Co Ltd, up 10.02 percent. ** The largest percentage losers in the Shanghai index were HNA Technology Co Ltd down 9.98 percent, followed by A-Zenith Home Furnishings Co Ltd, down 9.96 percent and HNA Technology Co Ltd down 9.93 percent. ** So far this year, the Shanghai stock index is down 15.1 percent, the CSI300 has fallen 15.2 percent while China’s H-share index listed in Hong Kong is down 5.9 percent. Shanghai stocks have risen 2.99 percent this month. ** About 13.96 billion shares were traded on the Shanghai exchange, roughly 127.1 percent of the market’s 30-day moving average of 10.98 billion shares a day. The volume in the previous trading session was 11.20 billion. ** As of 07:05 GMT, China’s A-shares were trading at a premium of 19.41 percent over the Hong Kong-listed H-shares. ** The Shanghai stock index is above its 50-day moving average and below its 200-day moving average. ** The price-to-earnings ratio of the Shanghai index was 11.76 as of the last full trading day while the dividend yield was 2.7 percent. ** So far this week, the market capitalisation of the Shanghai stock index has fallen by 0.56 percent to 29.66 trillion yuan. (Reporting by Shanghai Newsroom; Editing by Vyas Mohan)

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