Rise in mainland stock exchanges ends five-day downward trend

Stock markets in the Chinese mainland rose on Tuesday, ending a five-day losing streak.

The benchmark Shanghai Composite Index rose by 47.43 points or 2.07 percent to 2,337.87 points on Tuesday. The Shenzhen Component Index jumped by 159.01 points or 2.03 percent to 7,988.34 points.

Combined turnover on the two bourses on Tuesday was 333.33 billion yuan ($54.49 billion), up from Monday's 242.07 billion yuan.

The major market stimulus on Tuesday was news of a merger by train makers China CNR and CSR Corp. The move was seen as likely to turn the new company into a globally competitive business. Trading of shares in the two Shanghai-listed rail companies had been suspended on Monday, and they confirmed the merger plan later the same day.

The news boosted other rail-related firms, which on average soared by more than 5.5 percent. China Railway Group and China Railway Construction Corp jumped by 10 percent to 3.56 yuan and 6.07 yuan, respectively.

Shares linked to aerospace also surged more than 5 percent. Aerospace Hi-Tech Holding Group Co gained by 10 percent to 30.17 yuan.

Brokerage firms - which fell on Monday following media reports that the cross-border Shanghai-Hong Kong Stock Connect scheme had been postponed - saw gains on Tuesday. Guoyuan Securities Co rose by 9.83 percent to 15.42 yuan, outperforming its peers which saw an average gain of 3.20 percent.

In addition, concerns over liquidity were relieved as part of the funds that were locked in due to recent subscription processes for new IPOs were released on Tuesday.

ChiNext, China's NASDAQ-style board for high-tech and fast-growing start-ups listed in Shenzhen, rose by 30.04 points or 2.01 percent to 1,522.05 points on Tuesday.