Hopes for an end to the war between the U.S. and Iran, as well as a better trading surplus back home, have driven Chinese stocks to rebound on Tuesday.

The Shanghai Composite Index, the main gauge of Chinese stocks, gained 0.7% or 26.54 points to 4,123.14. The Shenzhen Component Index rose 2% or by 286.57 points to 14,354.07.

U.S. President Donald Trump earlier said the war with Iran could be nearing its end, but threatened to continue the conflict if Tehran continues to block oil shipments from the Middle East through the Strait of Hormuz, which it owns, Reuters reported separately the same day.

Meanwhile, China's trade surplus widened in the first two months of the year to $213.6 billion from $170.5 billion a year earlier, beating market expectations.

The figure is also the highest surplus on record for the January-February period.

On the corporate front, Contemporary Amperex Technology's (SHE:300750) Shenzhen shares closed 5% higher after posting a 42% rise in its 2025 attributable profit to 72.2 billion yuan.

The world's largest battery maker also estimated 13.6 billion yuan in daily related-party transactions in 2026.

Jiangsu Hengrui Pharmaceuticals' (SHA:600276) Shanghai shares rose 3% during market close after subsidiary Fujian Shengdi Pharmaceutical obtained clinical trial approval for its HRS9531 injection for chronic kidney disease.