China's benchmark Shanghai Composite Index rose for a third consecutive trading day Tuesday.

The Shanghai index edged up 0.08 percent to close at 3,365.23, following a 0.93 percent rise on Monday and a 1.83 percent increase on Friday.

Before Friday, the index had not closed above 3,300 points since Dec. 31, 2015.

The Shenzhen Component Index closed 0.44 percent lower at 10,762.37.

Combined turnover on the two bourses shrank to 565.3 billion yuan (about 85 billion U.S. dollars) from 640.8 billion yuan the previous trading day.

Market confidence has recovered to a large extent, said Anhui-based brokerage firm Guoyuan Securities, advising investors to take a more active attitude toward the current market.

Shenzhen-based Guosen Securities said there would be ample room above the 3,300-point mark, citing favorable factors, including a strengthening economy and low inflation.

Performances of market heavyweights were divided.

The Industrial and Commercial Bank of China, the country's largest lender by market value, rose 0.5 percent to 6.08 yuan. Bank of China, another large state-owned bank, rose 2.13 percent to 4.32 yuan.

On the flip side, Chinese oil giant PetroChina dropped 0.98 percent, while Poly Real Estate dropped 0.96 percent.

The ChiNext Index, China's NASDAQ-style board, dropped 0.61 percent to close at 1,831.59.