China stocks climbed to an eight-month high on Tuesday, while Hong Kong shares extended gains to a multi-year peak, driven by construction and power firms after work began on a major dam project in Tibet,

China's stock markets reached new heights driven by major construction and power firms after commencing work on a colossal hydropower dam in Tibet. Investor confidence in Beijing's economic policies spurred the CSI300 and Hang Seng indices to significant gains.

China’s longer tenor government bonds fell amid waning demand for haven assets as investors saw the launch of a 1.2 trillion yuan ($167 billion) mega-dam project in Tibet providing more support to the economy.

China has officially launched construction of what experts call the world’s largest hydropower project, a colossal dam on the Yarlung Zangbo (Brahmaputra) in southeastern Tibet.