Chinese stocks edged up on Tuesday, lifted by stronger overseas markets, but trading turnover was weak as many investors remained cautious following recent market slides. The Shanghai Composite Index ended 0.87 percent higher at 4,457.944 points, see-sawing through the psychologically important level of 4,500 points.
Gainers in Shanghai outnumbered losers by 689 to 206. Most banking and property shares gained, with China's biggest listed developer Vanke rose 1.88 percent to 26.03 yuan. Many analysts said the index's 7.19 percent plunge on Monday was excessive, triggered by falling global markets as well as disruption to transport, energy and food supplies due to heavy snows across China.
"Confidence was shaken, mainly by the crisis in overseas markets. But the Chinese economy remains healthy and nothing fundamental has really changed," said Li Xianming, strategist at Ping An Securities.
The official China Securities Journal on Tuesday quoted fund managers as saying they had not suffered large-scale redemption's. Also, the China Securities Regulatory Commission on Tuesday proposed new rules to allow brokerages to operate asset management businesses, which have been suspended for several years for an industry-wide clean-up.
"The business won't grow very rapidly under the current circumstances, but the step gives much-needed confidence to investors," said Jiang Jianrong at Shenyin & Wanguo Securities.
Tuesday's turnover dropped to 79.2 billion yuan ($11 billion), the lowest level since mid December, from Monday's 108.4 billion yuan. Jiangxi Copper, China's top copper producer, slumped 6.95 percent to 45.14 yuan. The stock has been tumbling since the firm announced last Wednesday a plan to raise up to $1.9 billion via bonds and warrants to fund expansion.
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