China shares ended up on Tuesday as gains food and beverage companies erased losses stemming from concerns a second batch of initial public offerings (IPOs) could pull funds from existing stocks. The Shanghai Composite Index added 0.2 percent at 2,070.36 points, hovering at a four-week high. The CSI300 of the leading Shanghai and Shenzhen A-share listings also inched up 0.2 percent.
Chinese liquor makers rose again on a brightening outlook for the beaten-down sector. Kweichow Moutai rose 2.7 percent and Jiangsu Yanghe Brewery jumped 5.4 percent. Among top index drags, Chongqing Changan Automobile, at a record high on Friday, sank 4.6 percent. Hong Kong shares firmed on Tuesday, with China Mobile being the top boost on the Hang Seng for the second day after a deal with two other telecom firms to share infrastructure.
The Hang Seng Index climbed 0.5 percent to 23,459.96 points, a one-week high. The China Enterprises Index of the leading offshore Chinese listings in Hong Kong was up 0.3 percent in its fourth straight winning session. China Mobile gained 3.4 percent to close at its highest since December 13, in its best day in more than two months. The country's largest mobile operator, together with China Unicom and China Telecom, posted solid gains in the previous session, lifted by a deal they announced late on Friday to jointly establish a telecommunications tower company. China Unicom added 1.1 percent while China Telecom rose 1.7 percent. The China Securities Regulatory Commission (CSRC) said late Monday it had given final approval to 12 firms seeking to list on the Shanghai or Shenzhen stock exchanges. Recently, there was a wave of 10 IPOs that were heavily subscribed.
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