China's shares closed 0.4 percent higher on Tuesday as embattled television maker Changhong rallied after announcing a tie-up with the country's top fixed-line telecoms firm. The benchmark Shanghai composite index closed at 1,257.462 points. It breached the psychologically crucial 1,300 level in December and racked up fresh five-and-a-half-year lows repeatedly over the past week. Blue chips that had previously been oversold - but were seen as having good earnings prospects - gained on Tuesday.
Minsheng Bank, China's second most valuable lender, surged 2 percent to 5.43 yuan after dipping to 5.18 yuan on Friday - its lowest point in about two years.
Wuhan Steel Processing Co Ltd, China's third-largest steel maker, was the day's most active counter, rising 1.6 percent to 3.84 yuan.
Steel prices stayed at multi-year highs throughout much of 2004 alongside rapid economic growth and are expected to stay firm in 2005.
"The index is nudging higher to recover lost ground, but it lacks momentum to rise sharply given lukewarm trading," said Cai Junyi, an analyst at Shanghai Securities.
Sichuan Changhong, China's largest television maker, surged 7.9 percent to 4.09 yuan.
It said it would cooperate with China Telecom Corp, the larger of the country's two fixed-line operators, in a variety of areas ranging from visual telephones to consumer electronics, though details were scarce.
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