Chinese Shares Advance Most in More than Two Weeks on Bargain-Hunting

BEIJING, July 7 -- Bargain-hunters helped put a brake on Chinese equities' weak performance Tuesday, with the major Shanghai index rebounding after recent sharp losses.

The benchmark Shanghai Composite Index climbed 1.92 percent to end at 2,409.42 points, the biggest daily increase since June 21. The index dropped to a 15-month low on Monday. It has declined more than 26 percent this year on concern over the national economic outlook.

The Shenzhen Stock Index gained 2.09 percent, or 191.99 points, to 9,363.02 points.

Most shares on the two bourses gained with gainers outnumbering losers by 877 to 14 in Shanghai and 975 to 12 in Shenzhen.

Non-ferrous metal sector, which was over-sold previously, gained 4.04 percent. Jiangxi Copper Company Ltd., the nation's biggest copper producer, was up 2.91 percent to 22.97 yuan (3.39 U.S. dollars). Stocks of the Inner Mongolia Baotou Steel Rare-earth Hi-tech Co., Ltd. added 7.83 percent to 35.39 yuan. Guangdong Dongyangguang Aluminum Co. increased by the daily 10-percent limit to 10.76 yuan.

Banking shares also gained, with the Industrial and Commercial Bank of China, the country's largest lender, up 1.97 percent to 4.14 yuan. Bank of China gained 3.26 percent to 3.48 yuan.

Total turnover stood at 108.94 billion yuan, expanding from 86.16 billion yuan on the previous trading day.

However, Guangfa Securities analyst Wan Bin said the aggregate turnover was still thin, indicating investors were still uncertain about the rally.