Gains in oil companies after crude prices rose overnight and a strong property sector after China Vanke’s better-than-expected first-half earnings report Monday led China shares marginally higher to a second consecutive 14-month closing high Tuesday.

Analysts said the Shanghai Composite Index is set to test the key 3500 level soon, but warned profit taking could set in any time.

The benchmark index, which tracks both A and B shares, ended up 8.85 points, or 0.3%, at 3471.44, its highest closing level since May 23, 2008, when it ended at 3473.09.

The Shenzhen Composite Index rose 8.73 points, or 0.8%, to 1149.27.

“After last Wednesday’s sharp loss, investors are more cautious as the market isn’t rising blindly any more,” said Lin Bin, an analyst at Guolian Securities.

The Shanghai index lost 5.0% Wednesday, its biggest single-day percentage decline in more than eight months, on concerns China’s central bank was poised to clamp down on lending following a first-half surge in credit.

Oil companies were among the biggest gainers Tuesday as crude futures settled at a six-week high in New York on Monday.

China Petroleum & Chemical rose 2.6% to CNY15.42, while Heilongjiang Heihua increased 3.7% to CNY7.62.

Light, sweet crude for September delivery settled $2.13, or 3.1%, higher at $71.58 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange settled $1.85, or 2.6%, higher at $73.55 a barrel.

Property developers rose after China Vanke said Monday its first-half net profit increased 22% to CNY2.52 billion from a year earlier on strong sales, beating market expectations.

China Vanke, the country’s biggest property developer by market share, ended 0.5% higher at CNY13.31, while Poly Real Estate Group gained 1.4% to CNY27.16.

Declines in banks capped gains in the broad market after a person familiar with the situation told Dow Jones Newswires Monday the banking regulator may stop allowing banks to count subordinated debt held by other lenders as part of their capital base.