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China shares rebound on bargain-hunting

China shares rebound on bargain-hunting

Chinese shares rebounded Wednesday as investors hunted for bargains after a decline a day earlier, led by financial and renewable energy stocks.
The benchmark Shanghai Composite Index gained 51.79 points, or 1.8 percent, to close at 2967.59. The Shenzhen Composite Index for China's smaller second exchange jumped 2.8 percent to 1003.27.
"The government has been adjusting its policies lately, so the market is fluctuating," said Cai Junyi, an analyst for Shanghai Securities.
Stocks have fallen since early August amid wide price swings as investors worry about corporate earnings, the strength of China's recovery and possible government curbs on credit that helped to fuel the boom.
Banks rebounded after falling sharply the previous session.
Industrial & Commercial Bank of China Ltd., the country's biggest commercial lender, rose 1.1 percent to 4.75 yuan. Bank of China Ltd. added 1 percent to 3.97 yuan, while China Construction Bank Ltd. inched up 0.5 percent to 5.56 yuan.
Insurers rose after China Life Ltd. said its first-half profit rose 15 percent from a year earlier. China Life added 0.7 percent to yuan, while Ping An Insurance Ltd. rose 1.7 percent to 49.65 yuan.
Renewable energy shares crept higher on rumors the government will raise fuel prices, which could make alternative energy more attractive.
Shenzhen Topraysolar Co., advanced 7.3 percent to 24.41 yuan, while Xinjiang Goldwind Sci & Tech Co. added 4.7 percent to 29.88 yuan.
In currency markets, the yuan strengthened to 6.8314 to the U.S. dollar, up from Tuesday's close of 6.8436.