Chinese shares jump over IPO delay reports

Investors talk about stock information at a trading hall of a securities firm in Shanghai, east China, July 23, 2013. (Xinhua/Ding Ting)

Chinese shares jumped on Tuesday as the country's securities regulator is reportedly delaying resumption of an initial public offering (IPO), easing investors' concerns over market liquidity.

The benchmark Shanghai Composite Index surged 1.95 percent, or 39.11 points, to end at 2,043.88, and the Shenzhen Component Index jumped 3.64 percent, or 279.48 points, to 7,963.7.

Combined turnover on the two bourses increased to 220.5 billion yuan (35.74 billion U.S. dollars) from 165.5 billion yuan the previous trading day.

An IPO relating to more than 80 authorized enterprises was expected to be launched before the end of July. However, it has been delayed as some firms have been asked by China's securities regulator to submit recent financial data. The delay helped boost trading Tuesday.

No sectors on the two bourses declined and more than 224 shares ended the trading day with growth of over 5 percent.

The global gold price surged 3.3 percent on Monday, the biggest increase in 2013, and the government started regulatory campaigns against the rare earth industry, which stimulated the non-ferrous metal sector up 3.34 percent with two shares hitting the daily increase limit of 10 percent.

The railway sector also surged as an investment scheme is expected to be submitted to the State Council, China's cabinet, in September in order to maintain the steady development of the industry. The shares of China Railway Group Limited, the country's largest construction giant, went up 5.16 percent to 2.65 yuan per share.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 2.15 percent, or 24.82 points, to close at 1,178.59 points.