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Chinese shares were up 1.97 percent yesterday, when investors were encouraged by a rebound in Hong Kong and other regional markets after the previous day's losses.

The Shanghai Composite Index closed at 2,840.18 points yesterday. Turnover in Shanghai A shares was 63.99 billion yuan, and gainers outnumbered losers 411 to 344.

Financial stocks led yesterday's rebound. Shares of China Life rose 2.04 percent to 32.94 yuan, while Industrial and Commercial Bank of China rose 4.05 percent to 4.88 yuan and the Pudong Development Bank jumped 9.01 percent to close at 23.6 yuan.