China shares were higher in early trade, shaking off opening weakness, as Baosteel rebounded after slumping over 7 pct yesterday.

At 9:55 am, the benchmark Shanghai Composite Index was up 25.15 points or 0.90 pct at 2,828.17.

Baoshan Iron & Steel (Baosteel), China's largest steel maker, was up 1.88 pct at 9.23 yuan.

The stock fell 7.83 pct yesterday on news that its parent Baosteel Group reached an agreement with Rio Tinto for an increase of up to 96.5 pct in iron ore contract prices.

Maanshan Iron & Stee was up 1.69 pct at 5.40 yuan.

China Petroleum & Chemical Corp, or Sinopec, Asia's largest refiner, added 1.16 pct to 11.38 yuan.

Airlines were down after a rise in crude oil prices overnight.

China Eastern Airlines slid 1.50 pct to 6.55 yuan.

Shenzhen Development Bank was down 1.72 pct at 21.18 yuan on news that 289.73 mln of its A-shares will come out of lockup tomorrow.

(1 usd = 6.9 yuan)