SHANGHAI: China and Hong Kong shares rose on Tuesday, as fears of a global banking crisis eased after investors digested the state-backed rescue deal for Swiss lender Credit Suisse over the weekend.

China’s blue-chip CSI300 Index closed up 1.1%, while the Shanghai Composite Index gained 0.6%. Hong Kong’s benchmark Hang Seng Index jumped 1.4%, while the China Enterprises Index climbed 1.2%.

The UBS-Credit Suisse deal has helped ease some banking contagion fears, although the complete write-off of the troubled bank’s additional tier 1 bonds has caused sell-offs in similar debt.