Equities get lift from reserve cut, IPO approvals

Stocks posted their largest gain in a month on Tuesday on news that initial public offerings would resume and some banks' reserve requirements would fall.

Analysts said the green light for a new round of IPOs lifted some of the uncertainties that had been weighing on the market and indicated that investors are eager to put their money to work.

"Theoretically, the resumption of IPOs will divert capital from the secondary market. However, that concern has been fully priced in. The announcement on Monday actually ended the negative message in this regard and helped stabilize the stock market," said Yang Delong, chief analyst of Shenzhen-based China Southern Asset Management Co Ltd.