Firming tech counters helped China shares to a slightly stronger finish on Tuesday, but the market closed off intraday highs after profit-taking emerged in stocks like Baosteel just before the close.
The Shanghai composite index, grouping hard-currency B shares and yuan-denominated A shares, edged up 0.41 percent to 1,703.774 points after meeting resistance near its year high of 1,715.464, brokers said.
Information network developer Tsinghua Unisple Co Ltd jumped its 10 percent daily limit to 15.74 yuan, while Internet service provider Chengdu Unionfriend Network Co Ltd also rose the maximum amount to 12.23 yuan.
Both were among the day's top gainers.
Brokers said investors were beginning to speculate in small-capitalised tech stocks with market sentiment improving after a strong rally over the past three months.
"Some little-known shares had traded up sharply in recent days, indicating a strong speculative mood in the market," said analyst Xi Weidong at Jinxin Securities.
The Shanghai composite index has gained 29.4 percent since mid-November, buoyed in part by repeated government pledges to support stock trading.
Steel counters ended mixed as shares such as Wuhan Steel Co Ltd faded by the close after a bout of late profit-taking, brokers said.
Wuhan Steel, the listed arm of China's fourth largest steel producer, closed up 5.25 percent at 7.82 yuan, having initially jumped its 10 percent daily limit to 8.17 yuan.
Baoshan Iron and Steel Co Ltd, a unit of the world's fourth most valuable steel counter, closed down 0.43 percent at 7.0 yuan, having risen 1.14 percent in intraday trade.
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