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Chinese Stocks Rally on Upbeat Economic Data

Chinese stocks rallied Tuesday, lifted by upbeat industrial profits in July and MSCI's expected A-shares' weighting increase in its indexes.

The benchmark Shanghai Composite Index climbed 1.35 percent to end at 2,902.19 points. The Shenzhen Component Index closed 1.86 percent higher at 9,443.18 points.

The combined turnover of stocks in the two indexes expanded to 558.28 billion yuan (about 78.85 billion U.S. dollars) from 461.1 billion yuan the previous trading day.

Gainers outnumbered losers by 1,332 to 118 on the Shanghai bourse and 1,912 to 209 in Shenzhen.

The ChiNext Index, China's NASDAQ-style board of growth enterprises, gained 1.71 percent to close at 1,628.12 points.

Profits at China's major industrial firms returned to growth in July, reversing a decline of 3.1 percent registered in June, supported by improvements in sectors of petrochemicals, electrical machinery and auto.

The A-shares' weighting increase in the MSCI indexes also helped drive the A-share market higher, with northbound net capital inflows via the stock connect schemes linking the Chinese mainland and Hong Kong exceeding 10 billion yuan.

The MSCI is expected to raise the inclusion factor of all large-cap China A-shares in the MSCI indexes from 10 percent to 15 percent, effective after market close Tuesday.

Computer application services, machinery, petrochemicals and electrical equipment sectors led the gains. Hundsun Technologies Inc. surged 6.45 percent to 75.4 yuan per share. Yonyou Network Technology gained 5.3 percent to 33 yuan.

(www.chinaview.cn 2019-08-29)