SHANGHAI stocks rebounded from two days of loses today, spurred by blue chip companies.

The Shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares, jumped 1.33 percent, or 70.88 points, to close at 5,409.40.

The Shenzhen Composite Index, which covers the smaller mainland stock market, rose 1.55 percent, or 22.73 points, to 1,492.30.

Banks and non-ferrous metals all rebounded from earlier losses.

China Construction Bank, which debuted on the mainland market on Monday, jumped 8.64 percent to 9.30 yuan (US$1.24) while Industrial and Commercial Bank of China rose 3.3 percent to 6.58 yuan.

Shanghai Pudong Development Bank rose 3.47 percent to 50.40 yuan and Bank of Beijing rose 3.14 percent to 22 yuan.

Jiangxi Copper Co, the country's second-biggest producer of the metal, jumped by the daily cap of 10 percent to 54.34 yuan and Yunnan Copper surged 7.41 percent to 91.30 yuan.

Real estate developers continue to struggle on concerns that China's central bank may increase interest rates on mortgages this week to curb a housing price surge and dampen speculation.

China Vanke, the nation's largest publicly traded developer, lost 2.04 percent to 29.25 yuan and Shanghai-based Shimao Property Holdings tumbled 3.73 percent to 28.38 yuan.

Analysts expect the correction to continue but the bull market is still predicted to last for the mid to long term.

China's stock regulator will tomorrow review a plan by Changjiang Securities Co to acquire an oil refiner for a back-door listing in a move likely to make the broker the fourth mainland securities house to go public this year.

The Wuhan City, Hubei Province-based brokerage has applied to take over Shijiazhuang Refining and Chemical Co, the Shenzhen-listed refiner said in a statement today.