BEIJING, June 26 (Xinhua) -- Chinese stocks extended gains from last week on Monday as market sentiment remained strong after MSCI announced it would include China A-shares in a key index.

The benchmark Shanghai Composite Index went up 0.87 percent to close at 3,185.44 points while the smaller Shenzhen Component Index closed 1.65 percent higher at 10,537.59 points.

The ChiNext Index, China's NASDAQ-style board of growth enterprises, was up 0.77 percent to close at 1,821.28 points.

The gain was mainly driven by the strong performance of blue-chip shares, which have been boosted since the global equity indexes provider MSCI made its decision last week.

MSCI announced last Wednesday that beginning in June 2018, it will include China A-shares in the MSCI Emerging Markets (EM) Index and the MSCI ACWI (All Country World Index) Index.

MSCI plans to add 222 China A Large Cap stocks, representing, on a pro forma basis, approximately 0.73 percent of the weight of the MSCI Emerging Markets Index at a 5-percent partial Inclusion Factor, according to its 2017 market classification review.

On Monday, the Hushen 300 index, which is mainly composed of large cap shares, jumped 1.25 percent.

A-shares are relatively undervalued compared with global stock markets, and the inclusion decision will attract more funds into the market, especially into those blue-chip shares, said Yang Delong, chief economist of First Seafront Fund. Enditem

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