SHANGHAI: Chinese shares rose the most in a week on Tuesday on signs of a recovery in the world's second largest economy, but Sino-US tensions and fresh flare-ups of coronavirus cases capped the rise. At the close, the Shanghai Composite index was up 0.7% at 3,227.96. The blue-chip CSI300 index had gained 0.9%. Both indexes saw the highest single-day rise since July 20.

CSI300's real estate index ticked up 0.7% and the healthcare sub-index fell 0.2%. The smaller Shenzhen index added 1.4% and the start-up board ChiNext Composite index rose 1.3%. The new tech-focused STAR 50 index gained 1.9%.

The Shanghai stock index is up 5.8% and the CSI300 has risen 11.5% so far this year. About 28.94 billion shares traded on the Shanghai exchange. The volume in the previous trading session was 29.93 billion.

Investors on Tuesday focused on signs of an economic recovery from the record slump earlier this year. This week, China reported strong growth in June industrial profits, which rose at their fastest pace in over a year.

"The relatively high pressure on employment and the constant change in coronavirus pandemic mean policy will not rapidly tighten, and Sino-US frictions will not change the trend of profits recovering in the second half," analysts at Everbright Securities said in a note.