Chinese shares post biggest weekly gain since March

BEIJING - Chinese stocks posted the biggest weekly gain in two and a half months this week, rising 4.2 percent.

The benchmark Shanghai Composite Index increased 0.46 percent to close at a one-month-high of 2,938.68 points. The smaller Shenzhen index closed 0.69 percent higher at 10,344.91 points.

The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, gained 0.75 percent to close at 2,204.97 points.

Friday's gain was partly buoyed by growing hopes that global stock index compiler MSCI (Morgan Stanley Capital International) will add Chinese shares to its index later this month. MSCI will announce its decision on June 15.

Huo Ruirong, deputy director of China Securities Regulatory Commission's Shanghai Bureau, said on Thursday that it would be a regret if A shares will not be added into MSCI index.

Combined trading on the two bourses expanded to 644.65 billion yuan ($97.97 billion) from 560.55 billion yuan the previous trading day.

Stocks related to Chinese spirits and food were among the biggest winners, whereas coal, cement and gold shares fell across the board.

Sichuan Swellfun, a leading brand of Chinese liquor, surged by the daily limit of 10 percent to close at 14.96 yuan.

Bright Dairy and Food, the country's top dairy producer, jumped 6 percent to finish at 12.9 yuan.

Bucking the trend, energy shares posted lackluster performances. Yanzhou Coal Mining, one of the biggest coal producers, dipped 0.73 percent to 9.5 yuan.

Anhui Counch Cement, the biggest cement maker, edged down 0.13 percent to 14.99 yuan.