Chinese shares gained on Tuesday, recovering past the 2,700-point mark though turnover remained weak. The benchmark Shanghai Composite Index rose 2.26 percent to 2,749.57 points while the smaller Shenzhen index jumped 3.1 percent to close at 9,610.93 points. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, surged 4.14 percent to close at 2,075.29 points.
Total turnover on the two bourses increased to 403.25 billion yuan (61.56 billion U.S. dollars) from the previous day but still remained at a relatively low level.Real estate heavyweights led the gains, with major developer Poly Real Estate Group rising 5.12 percent. Sub-indexes related to printing and packaging, textiles, and media were among the biggest winners on Tuesday.
To ease a liquidity strain before the Chinese New Year, the People's Bank of China (PBOC) on Tuesday injected 100 billion yuan into the financial system through open market operations. Instead of pumping liquidity into the market through cuts in interest rate or reserve requirement ratio, the PBOC used other tools including standing lending facilities, medium-term lending facilities and pledged supplementary lending, to offer more than 1.5 trillion yuan for the market in January. Market funding will remain stable thanks to the central bank's injection, but the country's large banks will still be cautious about lending before the Chinese New Year, said Guotai Junan Securities.
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