Chinese share prices rallied 1.87 percent on Tuesday as bank and property stocks led the recovery following a steady decline of almost seven percent over the last four days.

The Shanghai Composite Index on the Shanghai Stock Exchange closed at 5,773.39 points, up 1.87 percent or 106.06 points.

The Shenzhen Component Index on the smaller market ended at 18,611.16 points, up 1.26 percent or 231.75 points.

The combined turnover reached 155.7 billion yuan (US$20.76 billion), compared to Monday's 147 billion yuan.

The Industrial and Commercial Bank of China, the country's largest commercial lender, rose 5.5 percent to 7.86 yuan and the Bank of China, the second largest, rose 3.98 percent to 6.79 yuan.

Other major banks, including China Construction Bank, China Merchants Bank and China Minsheng Banking Corp, all rose more than three percent.

China's central bank pledged on Tuesday to continue strengthening and improving macro control in the financial sector by coordinating goals of economic growth, employment, stable prices and balanced international payments.

Shang Fulin, chairman of the China Securities Regulatory Commission, said on Tuesday the commission would step up reforms and regulations of the capital market, while reinforcing efforts to educate investors about market risks.

He also said the commission would encourage the construction of a multi-layer market and expand direct financing to meet the market's multiple demands for financing and investment.

China's leading property developer Vanke also rose 4.1 percent to 33 yuan and Chongqing Yukaifa Co. Ltd raised the ten-percent daily limit to 16.56 yuan.

(Xinhua News Agency October 24, 2007)