However, market gains capped amid growing caution that the recovery in the world's second-biggest economy could be gradual and bumpy even as Beijing eases strict COVID policies.
At close of trade, the benchmark Shanghai Composite Index edged up 0.02%, or 0.72 point, to 3,212.53. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.26%, or 5.30 points, to 2,067.93. The blue-chip CSI300 index grew 0.54%, or 21.32 points, to 3,968.20.
For the first time in about two years, China's capital city Beijing relaxed its norms for coronavirus test requirements on Tuesday, following the relaxation of anti-COVID curbs in several major cities over the weekend. Media reports also suggested that the Chinese government is gearing up to withdraw more curbs under its strict zero-COVID policy, following a wave of unprecedented protests against the law.
The Chinese mainland on Monday reported 4,988 locally transmitted confirmed Covid-19 cases and 22,859 local asymptomatic infections, China's National Health Commission said on Tuesday.
CURRENCY NEWS: The Chinese currency weakened against the U.S. dollar despite firmer mid-point fixing by central bank, due to growing caution that the recovery in the world's second-biggest economy could be gradual and bumpy even as Beijing eases strict COVID policies.
Sentiment was also eroded by growing concerns over the risks from eased COVID curbs in China. China's economy is likely to remain murky for the coming months despite a loosening of coronavirus controls, as the resurgence of infections will impact production and supply chain sectors
Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.9746 per U.S. dollar, firmer than the previous fix of 7.0384. The spot yuan CNY=CFXS slipped 0.2% to 6.9742 per dollar around late afternoon.
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