Stock exchanges see modest gains

Stock markets in the Chinese mainland inched up on Tuesday, after news of the resumption of IPO approvals had prompted a fall in the previous trading session.

The benchmark Shanghai Composite Index was up 15.30 points or 0.69 percent to close at 2,222.67 points on Tuesday.

The Shenzhen Component Index rose by 115.88 points or 1.38 percent to 8,492.52 points.

Combined turnover on the two bourses on Tuesday was 214.4 billion yuan ($35.19 billion). decreasing from Monday's 307.5 billion yuan.

Tuesday's modest gains were backed by strong performance in the cement, agriculture, home appliance, electronics and airplane sectors, while oil refiners and insurers performed weakly.

Shares in high-speed railways and nuclear power were boosted by news that Chinese Premier Li Keqiang had agreed on enhancing cooperation in the two areas with British Prime Minister David Cameron, who is currently visiting China.

Shenzhen Woer Heat-Shrinkable Material Co rose by the daily limit of 10 percent to 7.02 yuan on Tuesday and Jiangsu Shentong Valve Co was up 6.52 percent to 12.90 yuan.

Cement makers saw strong gains, with Henan Tongli Cement Co and Sichuan Shuangma Cement Co jumping by the daily limit of 10 percent to 6.78 yuan and 6.22 yuan, respectively.

Banks and electrical power companies also performed strongly as the preferred shares policy announced by the authorities could help to relieve financing pressure for them. Guodian Changyuan Electric Power Co rose by 9.94 percent to 7.19 yuan on Tuesday.

The agricultural sector also rose, partly because investors expect that a policy paper to be published by the government in January will introduce measures to support the industry.

ChiNext, China's NASDAQ-style board for high-tech and fast-growing start-ups listed in Shenzhen, saw a gain of 1.40 points or 0.11 percent to 1,255.33 points at the close on Tuesday after diving by 8.26 percent Monday, the biggest one-day decline on record.

The ChiNext index was hit hard on Monday by the China Securities Regulatory Commission's announcement of IPO resumption, as investors were concerned that funds might be diverted from existing stocks to newly listed companies.