The increase comes after several days of losses for the largest index in China, according to CNBC. The Shenzen Composite Index also gained 4.8% Tuesday after several days of similar losses.
"Talk of putting a halt to the initial public offering (IPO) process helped spur some buying and it will certainly help mitigate the prospect of traders selling existing stock holdings to take part in the IPO process," IG Chief Market Strategist Chris Weston said in a note to investors.
Weston continues, "There has also been talk of using the country's endowment fund to buy equities, as well as cutting stamp duty, while the central bank has further cut the seven-day repo rate by 20 basis points to 2.5%."
The higher Chinese composite indexes helped bring up shares of China-based companies such as SouFun.
SouFun is a Chinese online real estate portal. The company also operates home furnishing and improvement websites.
TheStreet Ratings team rates SOUFUN HLDGS LTD as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SOUFUN HLDGS LTD (SFUN) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."