Reuters

(Reuters)

China Shares Close Slightly Higher Ahead of MSCI Decision

Markets Reuters

China stocks ended modestly higher on Tuesday, as investors remained cautious after a slump earlier in the week and ahead of MSCI's decision on whether to add Chinese shares to one of its flagship indexes.

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Investors also worry about China's economic health and are bracing for a possible exit of Britain from the European Union.

Both the CSI300 index and the Shanghai Composite Index gained 0.3 percent, to 3,075.98 points, and 2,842.19 points, respectively. The indexes slumped 3 percent on Monday.

Trading remained sluggish in Shanghai as worries about China's economy deepened after data showed growth in China's fixed-asset investment slowed to a 15-year low.

Although some expect U.S. index publisher MSCI to include Chinese shares to its widely-tracked MSCI Emerging Markets Index later in the global day, many believe any near-term positive market impact will be limited given the time required for global funds to switch their asset allocations.

Most sectors fell, but financial and consumer shares firmed.

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(Reporting by Samuel Shen and Nathaniel Taplin; Editing by Sam Holmes)