The Shanghai Composite Index <.SSEC> climbed 3.7 percent in its biggest daily gain since July 10 to end at 3,756.54 points, ending three straight days of loss.
The CSI300 index <.CSI300> of the largest listed companies in Shanghai and Shenzhen rose 3.1 percent, during its third consecutive session of gain, and closed at 3,948.16.
Both the Shenzhen and Shanghai stock exchanges unveiled measures that make it more difficult for speculators to profit from hourly gyrations in stock prices.
The markets regained ground as major brokerages Citic Securities (>> CITIC Securities Company Limited) and Huatai Securities (>> Huatai Securities Co., Ltd.) said they would temporarily halt their short-selling services. They were joined by smaller rival Great Wall Securities.
Analysts said some investors took to the sidelines in the volatile market, waiting to see the government's next move.
China's Commerce Ministry said import growth is likely to remain at a low level on Tuesday, just a day after a private survey showed China's factory activity shrank more than initially estimated in July.
Packaging materials distributor Shanghai Zijiang Enterprise (>> Shanghai Zijiang Enterprise Group Co Ltd) was Tuesday's biggest gainer in the Shanghai index, surging 10 percent. In Shenzhen, shares of dye intermediates provider Hebi Janxi Chemical (>> HeBei Jianxin Chemical Co., Ltd.) and plastic products maker Anhui Guofeng Plastic (>> Anhui Guofeng Plastic Industry Co., Ltd) jumped 10 percent.
(Reporting by Donny Kwok; Editing by Richard Borsuk)
