China’s major stock indices closed higher on Tuesday, with the Shanghai Composite rising 0.43% to extend its recent rebound, while the Shenzhen Component and ChiNext indices gained 0.16% and 0.48% respectively. Trading activity showed modest improvement, with total market turnover reaching 1.14 trillion yuan – up approximately 2.23 billion yuan from the previous session – suggesting cautious but growing participation.
Market breadth strengthened significantly, with 82 stocks hitting their daily upside limit at the close and another 35 touching the limit intraday before retreating. The 70.09% closing rate for limit-up stocks indicates sustained buying pressure, particularly in small-cap and growth-oriented names. This surge in capped gains reflects improving risk tolerance among domestic investors after recent volatility.
While the benchmark indices posted moderate advances, the notable expansion in limit-up stocks – concentrated in sectors like technology, green energy and specialized equipment – signals active sector rotation. The combination of rising turnover and increased capped-gain stocks suggests funds are being redeployed from defensive positions to growth opportunities, though the relatively modest index gains show lingering selectivity in the current rebound. Market participants will watch whether this technical improvement develops into a broader rally.
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