Fresh funding leads to mainland stock exchange rebound

Stock markets in the Chinese mainland recovered on Tuesday, with a cash injection by the central government relieving investors' concerns about tight liquidity, and eight new companies launching IPOs.

The benchmark Shanghai Composite Index closed up by 17.06 points or 0.86 percent at 2,008.31 points on Tuesday. The Shenzhen Component Index inched up by 69.10 points or 0.92 percent to 7,593.43 points.

Combined turnover on the two bourses on Tuesday was 149.13 billion yuan ($24.64 billion), up from Monday's 135.94 billion yuan.

The gains on Tuesday came after the People's Bank of China, the central bank, injected fresh funding of 255 billion yuan ($42.14 billion) into the money market, easing concerns over tight liquidity.

Eight new companies made successful debuts on the SME and ChiNext boards in Shenzhen on Tuesday, with seven of them soaring by 45 percent from their IPO price. The firms include Zhejiang Wolwo Bio-Pharmaceutical, Chengdu Tianbao Heavy Industry, and Guangdong Qtone Education. Hangzhou Sunrise Technology rose by a more modest 18.67 percent on its first day of trading.

Stocks in media companies performed strongly on Tuesday with Shenzhen-listed Central China Land Media and Guangdong Guangzhou Daily Media Co jumping by the daily limit of 10 percent to 11.95 yuan and 14.59 yuan, respectively.

ChiNext, China's NASDAQ-style board for high-tech and fast-growing start-ups listed in Shenzhen, gained on Tuesday by 34.42 points or 2.51 points to 1,407.15 points at the close.