Financial stocks saw the biggest rise on Tuesday, with the insurance sector jumping by 6 percent, while banking and securities stocks rose by around 5 percent on average.
Investors and analysts said that favorable policies announced by the government during the past few days were the major factor behind the rebound on Tuesday.
Zhang Xiaojun, a spokesman for the China Securities Regulatory Commission (CSRC), said late on Monday that the market drop was merely an "adjustment" following the previous bull run. He also noted that too big a drop may hurt the development of the stock market, indicating the government's desire to stabilize the market, analysts said.
Besides Chaussures Vans Sk8 Hi Reissue Leather Noir Blanche , the Ministry of Finance and the Ministry of Human Resources and Social Security (MHRSS) jointly released draft rules late on Monday for pension funds to be invested in the stock market.
The draft rules restrict the maximum proportion of investments in stocks and equities to 30 percent of total net assets, according to a statement from the MHRSS.
Analysts said that pension funds worth over 1 trillion yuan ($161.3 billion) are expected to become available for investment in stocks and equities, as total pension funds reached 3.56 trillion yuan as of the end of 2014, according to data from the MHRSS in May.
Li Zhong, a spokesman for the MHRSS Chaussures Vans SK8 Hi Reissue Zip Pas Cher Noir Blanche , told the media Tuesday that the new move on pension funds may have some positive impact on the stock market but it is unlikely that any major boost will happen in the short term.
Li said that absolute safety must be guaranteed for pension fund investments, Xinhua News Agency reported Tuesday. "The funding is used for retirees' daily lives and it cannot be jeopardized by big risks," Li was quoted as saying.
An analyst at China Galaxy Securities Co surnamed Wang said that the rebound on Tuesday was a market readjustment, rather than a response to the recent favorable policies.
"There is usually a rebound after big drops," Wang told the Global Times Tuesday.
Wang also noted that the market should not overestimate the stimulus effect from pension fund investment Chaussures Vans Old Skool Rose Blanche Soldes , as the funds will avoid high-risk stocks.
Some analysts attributed the volatility in the A-share market to recent efforts by the securities authority to tighten controls on margin trading.
The China Securities Regulatory Commission announced in April that it would impose stricter regulations on margin trading and that it had required securities firms to strengthen checks on possible margin trading irregularities.
Meanwhile, media reports on Tuesday said that the government is considering cutting stamp tax for stocks, which could offer another boost for the market.
Also, Central Huijin Investment Ltd, a unit of the country's sovereign wealth fund Chaussures Vans Brite Old Skool Grise Noir Pas Cher , reportedly invested 10 billion yuan in the stock market on Monday, another sign that the government is trying to stabilize the market.
Wang noted that there is room for a further rise but the market is unlikely to go above 5,000 points, partly because of the curbs on margin trading.
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