SHANGHAI, July 21 (Reuters) - China stocks rose for the fourth straight session on Tuesday, with gains in telecoms and start-up firms offsetting weakness in banks, as investors regained confidence after government measures helped stabilise sentiment.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 0.1 percent, to 4,166.01, while the Shanghai Composite Index gained 0.7 percent, to 4,017.67 points.
Shenzhen’s start-up board ChiNext extended its rebound, up 1.8 percent, tracking its bullish U.S. counterpart, the NASDAQ.
“The market is under the government’s control...and investor sentiment has stabilised,” said Fu Xuejun, analyst at Huarong Securities Co.
“Over the past few trading sessions, there were few signs of panic selling. The market is getting back to normal.”
In a sign of Beijing’s fading concerns over liquidity shortage, state margin lender China Securities Finance Corp, which was tasked with stabilising the market, has delayed its plan to raise 100 billion yuan via short-term bills, four sources familiar with the matter told Reuters on Monday.
The official China Securities Journal said on Tuesday there is little room for China’s volatile stock markets to dive further in the near term due to ample liquidity and a recovery in investor confidence.
Telecommunications and transport stocks outperformed the market, while banking shares remained weak. The CSI300 bank index was down 1.5 percent. (Reporting by Samuel Shen and Pete Sweeney; Editing by Jacqueline Wong)