BEIJING, June 23 (Xinhua) -- Chinese stocks closed higher Friday with market sentiment boosted by easing liquidity conditions and MSCI's decision to include China A-shares in a key index.
The benchmark Shanghai Composite Index was up 0.33 percent to close at 3,157.87 points. The smaller Shenzhen Component Index closed 0.99 percent higher at 10,366.78 points.
Total turnover on the two indices shrank to 405.5 billion yuan (59.3 billion U.S. dollars) from 478.1 billion yuan the previous trading day.
The ChiNext Index, China's NASDAQ-style board of growth enterprises, was up 0.50 percent to close at 1,807.43 points.
China's central bank suspended open market operations Friday, citing abundant liquidity in the financial system.
"As rising fiscal spending near the end of month offsets maturing reverse repos, the liquidity level in the banking system is relatively high," according to a statement posted on the People's Bank of China website.
Global equity indexes provider MSCI announced Wednesday morning that beginning in June 2018, it will include China A-shares in the MSCI Emerging Markets (EM) Index and the MSCI ACWI (All Country World Index) Index.
MSCI plans to add 222 China A Large Cap stocks, representing on a pro forma basis approximately 0.73 percent of the weight of the MSCI Emerging Markets Index at a 5-percent partial Inclusion Factor, according to its 2017 market classification review.
Analysts estimated that the inclusion of China A-shares into the MSCI index might bring initial additional capital of 17 billion U.S. dollars to 18 billion U.S. dollars into the China A-shares market.
Titanium dioxide, graphene and non-ferrous metal sectors led the gains, while shares related with combustible ice and oil and gas reform suffered the biggest losses.
