China's major stock index rose to a fresh record high for a third straight session on Tuesday, as investors continued to buy heavily into steel shares.

The Shanghai Composite Index gained 0.50 percent to close at 4,651.22 points after a bumpy day. It opened 0.30 percent higher at 4,642.01, but fell to as low as 4,581.29 before hitting an intraday high of 4,687.44.

The Shenzhen Composite Index edged 0.06 percent higher to 1351.11 points.

Steel shares were the biggest winners as their valuation is still relatively low and they are expected to report strong interim earnings, drawing in many bargains hunters.

Liuzhou Iron and Steel Co. and Guangzhou Iron and Steel Co. both jumped their daily limit of 10 percent, followed by a 5.65 percent rise in shares of Baosteel to 15.72 yuan.

Other metals companies also rose. Aluminum Corp. of China soared 7.39 percent after Monday's 10 percent rally, and Western Mining jumped 4.17 percent, following a 7.8 percent rise on the previous session.

Sinopec also contributed to the increase. It rose 5.13 percent to close at 15.17 yuan per share. Shares in Air China hit 13.93 yuan after gaining 4.89 percent.

However, losing stocks outnumbered gainers by a ratio of five to three in the Shanghai and Shenzhen stock exchanges.

Analysts expected the market to continue the upward trend in the coming days as listed firms are scheduled to release strong earning figures in interim reports.