China shares soar on Tuesday

Chinese shares went up sharply on Tuesday, led by financial stocks.

The benchmark Shanghai Composite Index rose 3.11 percent to finish at 2,763.55 points. The Shenzhen Component Index closed at 9,366.95 points, up 2.98 percent.

Total turnover on the two bourses shrank to 675 billion yuan (111 billion U.S. dollars) from the previous day's trading of 681 billion yuan.

The financial sector led the rise, up 7.03 percent.

Brokerage shares continued to rise. Everbright Securities, Founder Securities, Guoyuan Securities and Soochow Securities rose by the daily limit of 10 percent.

Bank shares continued to rise. China Minsheng Bank rose by the daily limit of 10 percent to 7.91 yuan per share. Ping An Bank climbed 7.63 percent to 13.12 yuan per share.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, closed 0.85 percent higher at 1,565.42 points on Tuesday.

The central bank on Tuesday suspended repurchase operations on the open market, indicating liquidity in the market will further improve.

The market has been rising following the interest rate cut announced on Nov. 21.

Many institutions expected a cut in the reserve requirement ratio for some banks soon, which is expected to free up more funds in the equity market.