(Xinhua)
Updated: 2008-04-15 19:22

BEIJING - China's benchmark stock index closed 1.57 percent higher in light volume on Tuesday, as shares made a U-turn on late afternoon bargain hunting.

The gain should be seen as a technical rebound, since many shares were over-sold, according to securities firm Beijing Shoufang.

The Shanghai Composite Index finished 51.68 points higher at 3,348.35, still 45 percent off its record high in mid-October. During the morning, it fell as much as 2.57 percent at one point to 3,212.15, the lowest in more than a year.

The index plunged 5.62 percent to 3,296.67 on Monday, the biggest one-day loss since late January, amid sell-offs on regional markets and fears of further tightening policies.

The Shenzhen Component Index edged up 47.19 points, or 0.38 percent, to 12,390.79. It tumbled 7.39 percent to 12,343.61 on Monday, the biggest one-day percentage loss since June 4.

Gains outnumbered losses by 710 to 131 in Shanghai and by 556 to 96 in Shenzhen. Aggregate turnover was 88.7 billion yuan (US$ 12.7 billion), compared with 99.6 billion yuan on Monday.

The rebound mirrored gains in regional markets. Tokyo's Nikkei 225 index closed 0.57 percent higher and Kong Kong's Hang Seng index finished 0.38 percent higher on Tuesday.

Venture capital-related shares surged on reports that the market regulator, the China Securities Regulatory Commission, denied market speculation of a delay in launching the Nasdaq-style growth enterprise board, said Beijing Shoufang.

Shanghai Dazhong Public Utilities (Group) Co. rose 9.9 percent to 15.21 yuan. Tsinghua Unisplendour Co. gained 9.99 percent to 17.39 yuan. Zhuhai Lihe Co. added 9.98 percent to 15.76 yuan.

Metals and food-related shares led the broad rebound.

Aluminum Corp. of China (Chalco) rose 5.51 percent to 21.84 yuan, while Jiangxi Copper gained 3.35 percent to 30.52 yuan.

Gansu Dunhuang Seed Co. jumped 7.01 percent to 16.94 yuan. Tongwei Co. climbed 8.96 percent to 15.81 yuan.

Gains in blue-chip shares also contributed to the rebound. Valuations of many blue-chip shares had become more reasonable, although fragile investor confidence took time to recover, said Shanghai Shiji Investment Consulting.

PetroChina, the most heavily weighted stock in the Shanghai index, edged up 0.89 percent to 17.06 yuan. China Petroleum and Chemical Corp. (Sinopec) rose 1.66 percent to 11 yuan.

Industrial and Commercial Bank of China was up 0.86 percent to 5.86 yuan. China Construction Bank rose 1.59 percent to 7.03 yuan. China Life climbed 1.8 percent to 28.26 yuan.

Property shares were the worst performers, dropping 1.5 percent as a group -- on top of Monday's roughly 8 percent loss -- on market talk of new government moves to cool the sector.

China Vanke slid 3.36 percent to 22.15 yuan. Gemdale Corp. tumbled 6.2 percent to 14.52 yuan and China Merchants Property Development Co. plummeted 7.39 percent to 35.83 yuan. Shares in the three leading real estate firms all fell by the 10 percent daily limit on Monday.