Chinese shares rose 1.59 per cent yesterday as the market rebounded after official media reported that Beijing may allow insurers to invest a bigger portion of their funds in the stock market.

But the rebound came in a very thin trading volume, which was at its lowest in almost five months as many investors remained on the sidelines. Turnover in Shanghai A shares was a weak 10.9 billion yuan (US$1.4 billion), down from Monday's 13.7 billion yuan (US$1.7 billion), and the lowest level since end-March.

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