Stock markets in Shanghai and Shenzhen climbed higher Tuesday as trading sentiment strengthened following Monday's impressive gains.

The Shanghai Composite Index closed at 2,325.68 after surging 13.94 points, or 0.60 percent; while the Shenzhen Component Index tacked on 65.42 points, or 0.70 percent, to finish at 9,381.69.

Both exchanges opened higher Tuesday as environmental protection and military stocks held on to the momentum they had picked up during the previous day. Paper making, rare earth and railway stocks performed strongly, contributing to gains in the afternoon session. Combined trading volume at the two exchanges reached 283.2 billion yuan ($45.54 billion) for the day, up from Monday's 248.3 billion yuan total.

According to analysts, investors are starting to show more confidence in Chinese A-shares now that the Shanghai benchmark has surpassed the 2,300-point mark, but they should be cautioned that the markets may not stay bullish and any adjustments could dent the advances made over the past two trading days.

Environmental protection shares again benefited from the continued smog problems in Beijing and other cities. The sector finished with the day's biggest advance after jumping 5.52 percent. Tianjin Capital Environmental Protection Group Co rose by the 10-percent daily limit to 5.36 yuan.

The culture and media sector, as well as agricultural stocks, were also among Tuesday's winners. Jiangsu Phoenix Publishing & Media Co added 9.94 percent to 7.85 yuan. Fortune Ng Fung Food (Hebei) Co increased 9.98 percent to 6.61 yuan.

Petroleum, banking, property, shipbuilding and liquor stocks had a mixed day. Red wine producer Yantai Changyu Pioneer Wine Co dropped 1.29 percent to 46.74 yuan. Shanghai-based shipbuilder China CSSC Holdings Ltd sank 2.55 percent to 24.05 yuan. Bank of China shed 0.34 percent to 2.97 yuan.