China Stocks Trade in the Green

The Shanghai Composite rose 19 points, or 0.6%, to around 3,370, while the Shenzhen Component gained 0.9% to 10,632 in early deals on Tuesday, recovering from losses in the previous session.

The indices tracked gains on Wall Street overnight, supported by robust gains from Big Tech and semiconductors.

Traders awaited the PBoC's upcoming decision on the one-year medium-term lending facility after the central bank kept it unchanged at 2% for two months, amid hopes of additional measures.

However, news from the US capped the gains after the White House announced a trade investigation into semiconductors made by China, less than a month before the new US administration takes office, which could impose additional tariffs on Chinese-made products.

Among early gainers were China Merchants Bank (1.3%), China Petroleum & Chemical (1.2%), Shanghai Pudong Development (1.8%), Wanhua Chemical Group (1.1%), and Jiangsu Hengrui Pharmaceuticals (1.3%).