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China reshuffles stock indexes in favor of high-tech companies

Overhaul comes as global compilers remove shares linked to military

The Shanghai Stock Exchange building. China last year began the first overhaul of its share indexes since 1991 to address the excess weighting given to traditional industries.   © Reuters

HONG KONG -- China's stock indexes took on a fresh cast Monday, with new economy shares taking the place of financials and energy companies to better reflect the country's increasingly high-tech market and help lure new passive funds.

The changes, which are expected to boost institutional investors' participation in the country's retail-dominated stock markets, come as investors prepare to increase their presence in the world's second-largest economy.

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