(Corrects headline and 1st paragraph to say Thursday was best
day for CSI300 index since August 2016, not in 21 months)
SHANGHAI May 25 China stocks rebounded sharply
on Thursday, as the blue-chip CSI300 index posted its best day
in more than nine months amid growing hopes that global index
provider MSCI Inc will add mainland shares to its benchmark next
Investors appear to have shrugged off Moody's downgrade of
China's credit rating on Wednesday, after several senior
government officials criticised the decision.
The blue-chip CSI300 index rose 1.8 percent, to
3,485.66 points, its biggest gain since Aug. 15. The Shanghai
Composite Index advanced 1.4 percent to 3,107.83 points.
The strongest performers were banking and real
estate stocks, whose indexes jumped 3.3 percent and
4.0 percent, respectively.
China's Nasdaq-style board ChiNext inched up 0.1
percent, reversing earlier losses to follow the broader market
The SSE 50 - dubbed China's "Nifty Fifty" index -
jumped 2.7 percent to close at a near 17-month high.
Expectations were building that MSCI will announce
China's inclusion its Emerging Markets Index when it issues its
annual classification review on June 20.
Snubbing China last year, MSCI cited concerns over share
suspension rules and monthly limits on repatriating capital.
China Securities Co., a brokerage, said in a report on
Wednesday: "The chance of an A share inclusion into MSCI has
risen drastically for 2017."
The brokerage encouraged continued buying of leading
blue-chips, which have already outperformed small-caps this
JP Morgan, China International Capital Corp and BlackRock
have also expressed optimism over prospects A shares could be
include by MSCI this year.
(Reporting by Luoyan Liu and John Ruwitch; Editing by