A trader follows the trend of the stock market File photo: VCG

The Chinese stock market rallied on Tuesday after hitting the three-year low, boosted by a State Council meeting vowing to take "stronger, more effective measures" to stabilize the capital market and improve market confidence.

Analysts are generally positive about the prospect of China's stock market, which has become one of the most attractive markets globally in terms of valuation of shares.

The Shanghai Component Index closed up 0.59 percent to 2,770.98 on Tuesday, the Shenzhen Composite Index rose by 1.38 percent to 8,596.28. The tech-heavy ChiNext index went up by 1.24 percent to 1,687.61.

Stocks of many Shanghai State-owned enterprises staged a stellar performance, with companies including Shanghai Phoenix Enterprise (Group) Co, Shanghai Material Trading Co, Capital Securities Co and China Television Media rising by the daily limit.

A meeting of the State Council, the cabinet, held on Monday pledged "stronger, more effective measures" to stabilize the market and improve market confidence.

Efforts will be made to enhance the innovation and coordination of policy tools, consolidate and strengthen the trend of economic recovery, and promote the stable and healthy development of the capital market, according to meeting notes.

According to a report by Bloomberg Tuesday, relevant Chinese authorities are seeking to mobilize about 2 trillion yuan ($278 billion), mainly coming from offshore accounts of state-owned enterprises, as part of a stabilization fund to buy shares onshore through the Hong Kong exchange link.

In Hong Kong market, the Hang Seng Index rose by 3.26 percent to 15,448.54 points as of 2:30 pm Tuesday, regaining the psychological threshold of 15,000.

The Hong Kong Special Administrative Region government is closely following Hong Kong equity market fluctuations, and considers the market still operating in an orderly fashion without abnormal phenomenon, Chief Executive John Lee Ka-chiu said on Tuesday.

As an international financial hub, Hong Kong SAR remains competitive and attractive. Hong Kong enjoys free capital flows, highly transparent operations and sound supervision system, according to Lee. He said the equity market fluctuations are mainly due to market factors, calling for investors to make decisions by closely following market changes.

The Chinese stock market has become one of the most attractive markets across the world in terms of share valuation. The valuation of A-shares is about half that of US market stocks, Zhu Liang, chief investment officer of AllianceBernstein's office in China, said in a note sent to the Global Times on Tuesday.

China is the world's largest foreign trade country and its capital market is a venue that could provide good yields. Currently, investors across the globe are quietly paying attention to A-share market, Zhu said, noting that they are "waiting for wind." In 2024, listed Chinese companies are expected to maintain a good profit growth, with the growth rate of earnings per share (EPS) expected to be around 17 percent, Zhu said.