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China's overlooked stocks enter spotlight with MSCI debut

Liquor company Kweichow Moutai and state-owned industrials are seen as beneficiaries

The inclusion of A-shares will see 234 mainland-listed stocks, including distiller Kweichow Moutai, joining the MSCI China Index.

HONG KONG -- As domestically traded Chinese stocks join MSCI's widely tracked market indexes on June 1, more international funds are expected to flow into China's traditional industries, which over the years have been underweighted by foreign investors.

Industrial companies, large-cap financials and the booming consumer sector -- which includes major liquor manufacturers Kweichow Moutai and Wuliangye Yibin -- are among those cited by analysts as having the best growth potential, as investors are catching up with their investments in domestic-oriented companies that have a smaller presence in overseas markets.

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