China key stock index touches new high

BEIJING - Chinese stocks continued to rise on Tuesday with the benchmark Shanghai Composite Index climbing for the third consecutive day at a new seven-year high.

The index gained 0.34 percent, 13.85 points, to finish at 4,135.56. However, the Shenzhen Component Index and the ChiNext Index tumbled 0.76 percent and 0.73 percent respectively in Tuesday's trading.

Total turnover on the two bourses amounted to 1.45 trillion yuan (about 236 billion U.S. dollars), approximately the same as the previous day.

Over 100 stocks rose by the 10-percent daily limit across the board, except for non-ferrous metals, entertainment and environmental protection sectors.

Companies related to railways or infrastructure continued to rise on Tuesday. China Railway Group hit the daily growth ceiling quickly in the morning session.

Ship builders also performed well, with the China Shipbuilding Industry Company leading the growth with a 9.79 percent increase.

Many IPOs are due this week, which will lock up a great amount of capital and put pressure on the market.

CITIC Securities analyst Chen Dongwei said, "The possibility of a slump in the equity market is rising and investors should be more cautious."