China's stocks rebounded mildly on Thursday, with the benchmark Shanghai Composite Index ending a six-day losing streak amid hopes for more credit-loosening measures.
The Shanghai Composite Index edged up 2.49 points, or 0.1 percent, to close at 2,397.55.
The Shenzhen Component Index clambered 9.43 points, or 0.1 percent, to finish at 9,966.74.
Combined turnover expanded slightly to 104.97 billion yuan (16.5 billion U.S. dollars) from 101.27 billion yuan on the previous trading day.
Losers outnumbered gainers by 562 to 326 in Shanghai, and 768 to 557 in Shenzhen.
The rebound came after China's central bank confirmed Wednesday that the reserve requirement ratios for six rural banks in the eastern province of Zhejiang will be rolled back to 16 percent from the current 16.5 percent, effective Friday.
The People's Bank of China said the move was a normalization after a hike of the reserve requirements by 50 basis points a year ago and can not be interpreted as cutting the ratios for the six banks.
Analysts said chances are low for a reserve requirement ratio cut for all financial institutions this year, but weak factory activity data kept hopes alive for more fine-tuning of the country's tightening monetary policy.
The HSBC reported on Wednesday that China's manufacturing Purchasing Managers Index for November would decline from October's 51 to 48, the lowest level in 32 months.
Sub-indices for real-estate developers, medical companies and the service industry rallied the most on Thursday, while manufacturing, mechanical and agricultural sub-indices dropped.
China Vanke, the country's biggest property developer, gained 2.26 percent to 7.25 yuan. Poly Real Estate (Group) Co. Ltd., China's second-largest developer by market value, rose 2.92 percent to 9.17 yuan.
Industrial and Commercial Bank of China, China's top lender, strengthened 0.94 percent to 4.28 yuan. China Construction Bank, the second-largest bank, moved up 0.64 percent to 4.75 yuan.
