* SSEC +0.1 pct, CSI300 -0.1 pct, HSI -0.4 pct
* SSE50 Index to hit near 2-yr-high on rising foreign
* Hong Kong’s second board hit record low as penny stocks
SHANGHAI, June 28 (Reuters) – China’s share market was
steady on Wednesday morning, with an index tracking the
country’s top 50 stocks poised to scale its highest level in
nearly two years thanks to stepped up foreign demand for Chinese
blue-chips since the MSCI inclusion last week.
But Hong Kong stocks sagged, as sentiment was hurt by a
stumble on Wall Street overnight and more losses on the city’s
second board following the previous session’s nearly 10 percent
China’s blue-chips CSI300 index dipped 0.1
percent, to 3,671.24 points by the lunch break, while the
Shanghai Composite Index gained 0.1 percent, to 3,192.82
The SSE50 Index, which tracks China’s biggest 50
listed firms by market capitalization, is on course for its
highest closing level since mid-August, 2015.
Index publisher MSCI’s decision last week to include 222
Chinese “A-shares” into its emerging markets benchmark would
“help prop up the value of China’s quality blue-chips, and would
help stabilize its stock market,” Fang Xinghai, vice chairman of
the China Securities Regulatory Commission (CSRC), told a
seminar on Tuesday.
Fang said China’s securities regulator will strive to reduce
policy uncertainty and will adjust capital control mechanisms if
necessary to expedite foreign investment in A-shares.
There are already signs of strong foreign appetite for
On Tuesday, the CSOP FTSE China A50 ETF, Hong
Kong’s biggest yuan-denominated exchange-traded fund (ETF) that
buys Chinese shares under the so-called RQFII scheme, attracted
inflows of roughly 1.5 billion yuan ($220.16 million), the
biggest daily inflow this year.
Fund manager CSOP Asset Management attributed the inflow
jump to the high correlation between the FTSE China A 50 Index,
and MSCI’s A-share inclusion plan, as well as a stabilizing
Sector performance was mixed, as banking shares
posted robust gains, but consumer stocks corrected.
Hong Kong stocks fell, in line with most Asian markets,
after Wall Street was knocked hard in the wake of a delay to a
U.S. healthcare reform vote.
The Hang Seng index dropped 0.4 percent, to 25,747.90
points, while the Hong Kong China Enterprises Index lost
0.5 percent, to 10,447.92.
Sentiment was also soured by a slump in the Growth
Enterprise Market (GEM), which skidded further,
having tumbled nearly 10 percent on Tuesday to close at a record
Shares of penny stocks such as Greaterchina Professional
Services Ltd plunged yet again as investors raced to
reduce their exposure to the highly volatile market.
Greaterahina Professional lost 31 percent, after Tuesday’s 93
percent free fall.
(Reporting by Samuel Shen and John Ruwitch)