China stocks close higher as central bank tries to stabilise yuan

The CSI300 rose 0.7%, while the Shanghai Composite Index gained 0.2% to 3022.86 points

China stocks closed higher in choppy trade on Tuesday as the central bank tried to stabilise the yuan after allowing it to sharply depreciate in the first week of the year, sowing confusion in global financial markets over its policy direction.

Sentiment was also supported by reports that China's cabinet, the State Council, may take a more active role in financial regulation following a series of perceived mis-steps under the current regulatory regime.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 0.7% to 3,215.71 points, while the Shanghai Composite Index gained 0.2% to 3,022.86 points.

Among the most active stocks in Shanghai were CN Shipbuilding, up 3% to 8.24 yuan; Shanxi Coal, down 3.5% to 4.94 yuan and Nanjing Steel, down 6.3% to 2.97 yuan.

In Shenzhen, Hebei Steel, down 2.2% to 3.54 yuan; Myhome, down 5.8% to 5.35 yuan and BOE Technology, up 0.4% to 2.76 yuan were among the most actively traded.

Total turnover of A shares traded in Shanghai was 20.6 billion lots, while Shenzhen volume was 21.7 billion lots.