China stocks rose on Tuesday on further signs that activity in the services sector is speeding up, and as investors bought shares expected to benefit from reforms. The bluechip CSI300 index gained 0.1 percent to 3,207.38. The Shanghai Composite Index rose 0.6 percent to 3,007.11 points, the first time it closed above the 3,000 mark since April 19.
Activity in China's services sector rose to an 11-month high in June, a private survey showed on Tuesday, indicating that Beijing is making progress in rebalancing the economy. Analysts said overall sentiment was positive, buoyed by ample liquidity in the system and expectations that authorities would roll out further economic stimulus measures.
Sector performance was mixed with consumer stocks gaining 0.7 percent, and resources up 0.1 percent, while banks and healthcare fell. "The sectors related to SOE (state owned enterprises) reforms and military equipment have led the rally in A shares," said Tian Weidong, head of research at Kaiyuan Securities in Shaanxi. The central bank had said on Monday that it would use various policy tools to maintain appropriate liquidity and reasonable growth in credit and social financing. Sector performance was mixed with consumer stocks gaining 0.9 percent, while resources, banks and healthcare slid.
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