Stocks recover on plan of free trade zones

Shanghai stocks rebounded from their weak performance on Monday following the release of a master plan for six new pilot free trade zones that aimed at pushing forward China's reform and opening-up process. 

The benchmark Shanghai Composite Index advanced 1.35 percent to 2,902.19 points and turnover was 231 billion yuan (US$32.5 billion). 

Bohai Securities wrote in a research note that the profitability of domestic listed companies and continual structural reform would give a long-term boost to the performance of A shares. 

Financial shares also reversed Monday's losses. China Life Insurance rose 2.93 percent and Bank of China gained 1.42 percent. 

Pharmaceutical shares continued the strong performance following the soon-to-be-enacted new revision of the drug administration law to encourage the operation of drug retail chains. 

It would also reduce punishment for distributing drugs that have not been approved by the National Medical Products Administration.

Sinolink Securities said this would boost new business models for leading players in the market and is also consistent with recent reforms to expedite introduction of new drugs. 

Sichuan Kelun Pharmaceutical Co went up 0.67 percent to 28.48 yuan. Wuxi Apptec Co advanced 1.50 percent to 83.32 yuan.