Chinese shares rise on relieved refinancing panic

BEIJING, Feb. 26 (Xinhua) -- Chinese shares rose 1.09 percent on Tuesday as liquidity concerns remained but were somewhat relieved by the stock watchdog's overnight call for more cautions refinancing moves.

The benchmark Shanghai Composite Index closed at 4,238.18, 45.65 points up. The Shenzhen Component Index lost 158.25 points, or 1.02 percent, to 15,328.42.

The China Securities Regulatory Commission (CSRC) issued a statement on Monday evening, urging listed firms to "carefully" consider investors' demand when making refinancing plans by share offering.

Analysts say the watchdog's move, together with companies' dismissal of refinancing rumors, relieved investors' panic but was inadequate to solve the liquidity strain.

Gainers led losers by 465 to 316 in Shanghai on Tuesday and by 377 to 227 in Shenzhen.

Combined turnover decreased to 135.51 billion yuan from 136.26 billion yuan on Monday.