Shares surge on hopes of MSCI index inclusion

Mainland stocks jumped the most in two months on Tuesday with foreign funds flowing in, driven by expectation that MSCI Inc will next month add mainland shares to its index for the first time.

The Shanghai Composite Index surged as much as 3.34 percent, closing at 2,916.62 points, led by financial companies. Nine securities firms, including Western Securities Co and Shanxi Securities Co, climbed by the daily limit as the top performers in the market.

The Shenzhen Component Index rose 4 percent, while the ChiNext startup index climbed by 4.92 percent.