September 28, 2018 / 4:32 AM / 2 months ago

China stocks rise, set for second weekly gain after FTSE inclusion

* SSEC +0.9 pct, CSI300 +1.1 pct, HSI +0.6 pct

* Trade war uncertainty fades, aiding sentiment

* More China stocks will be included in global benchmarks

SHANGHAI, Sept 28 (Reuters) - China stocks rose on Friday, poised to register their second straight weekly gain, as investors expect fresh foreign inflows as a result of more Chinese shares being included into mainstream global benchmarks.

** The CSI300 index rose 1.1 percent to 3,440.33 points at the end of the morning session, while the Shanghai Composite Index gained 0.9 percent to 2,817.73 points.

** China’s financial markets will be closed next week for the National Day holiday.

** In Hong Kong, the Hang Seng index added 0.6 percent to 27,886.84 points, while the Hong Kong China Enterprises Index gained 1.1 percent to 11,062.00. ** U.S. President Donald Trump’s administration started levying additional tariffs on $200 billion of Chinese goods on Monday. Beijing retaliated with fresh tariffs on $60 billion of U.S. products, and has unveiled a raft of stimulus measures to support consumption and economic growth.

** Hopes that more China stocks will be included into mainstream global equity benchmarks also helped heal battered investor confidence. FTSE Russell said on Thursday it will start including mainland shares in its flagship indexes from June next year, in a move that it expects will draw initial net inflows of $10 billion from passive investors.

** The FTSE announcement came a day after rival MSCI said it would consider boosting the Chinese share weighting in its indexes next year, potentially triggering $66 billion in broad foreign inflows.

** The official and private surveys on September Chinese manufacturing activity will be released on Sept. 30. ** China’s CSI300 financial sector sub-index was higher by 1.86 percent, the consumer staples sector up 0.94 percent, the real estate index up 1.27 percent and the healthcare sub-index up 0.87 percent. ** The smaller Shenzhen index was up 0.46 percent and the start-up board ChiNext Composite index was unchanged. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.09 percent while Japan’s Nikkei index was up 1.58 percent. ** The yuan was quoted at 6.8836 per U.S. dollar, 0.08 percent firmer than previous close of 6.889.

Reporting by Samuel Shen and John Ruwitch, Editing by Sherry Jacob-Phillips

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