Mainland stocks end the past week higher

Chinese mainland stocks closed higher on Friday amid hopes that China and the US could reach a deal in the latest round of trade negotiations.

The blue-chip CSI300 index ended 1 percent higher at 3,903.06 points, while the benchmark Shanghai Composite Index closed 1.2 percent higher at 3,193.30 points.

Meanwhile, the smaller Shenzhen Component Index closed 0.35 percent higher at 10,672.52 points. Shares gained across the board. The CSI300 financial sector sub-index ended higher by 1.35 percent on Friday, with the consumer staples sector closing up 0.99 percent, the real estate index ending 1.08 percent higher and the healthcare sub-index ending higher by 0.99 percent.

Recently, China and the US agreed to a package of proposed Chinese purchases of American goods and other measures aimed at reducing the US trade deficit with China.

Meanwhile, China dropped its anti-dumping probe into imports of US sorghum on Friday, a move seen as a goodwill gesture as Chinese Vice Premier Liu He was in Washington for trade talks.

Over the past week, the Shanghai index rose by nearly 1 percent, while blue chips were up 0.8 percent.

Stock markets on the Chinese mainland were also boosted and will continue to be supported by MSCI’s upcoming inclusion of A-shares, starting on June 1.

Data showed that overseas investors have been adding positions of A-shares via the stock connect programs, with net inflows of funds from Hong Kong to the Shanghai and Shenzhen stock exchanges reaching 38.7 billion yuan ($6.1 billion in April.

As the first step of the inclusion, 234 Chinese A-shares will be added to the MSCI China Index as well as related global and regional composite indexes as of the close of trading on May 31.

The list consists mostly of blue-chip stocks, with the majority of companies being in the financial, consumer and medical sectors.