MARKETS-CHINA-STOCK/CLOSE

China Stocks Gain Slightly, Economy Concerns Cap Gains

Markets Reuters

China stocks rose slightly on Thursday but gains were capped by concerns about weak factory activity readings, which suggest the world's second-largest economy is still struggling to get traction.

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The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 0.2 percent to 3,167.10 points, while the Shanghai Composite Index gained 0.4 percent to 2,925.23 points.

Official and private manufacturing surveys on Wednesday showed signs that activity had steadied in May but remained weak amid soft demand at home and abroad.

Some analysts believe the market will revive if China shares are added to the MSCI index. A decision will be made on June 14.

China stocks posted their biggest daily gain in three months on Tuesday on bets that the MSCI would include mainland shares in its emerging market benchmark for the first time.

Most sectors rose on Thursday, but banking shares dipped on continued profit-taking.

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(Reporting by Samuel Shen and Pete Sweeney; Editing by Kim Coghill)