China B-shares closed higher on a technical rebound after the key index briefly dipped below 2,600 points in early trade, dealers said.

Livestock company Shanghai Dajiang and metal fabricator China Fangda led the gains.

The Shanghai B-share Index rose 4.20 points or 2.02 pct to 211.91, while the Shenzhen B-share Index gained 3.98 points or 0.86 pct to 467.70.

"The market got strong support from buyers when the key index fell below 2,600,' said a Shanghai-based analyst who asked not be identified."

"It is likely to rebound further with more capital flowing in, as seen from the sharply higher turnover today," the analyst noted.

Turnover rose to 74.07 bln yuan from 43.56 bln in the previous session.

In Shanghai, Shanghai Dajiang jumped 9.81 pct to 0.403 usd, while Jinzhou Port added 3.20 pct to 0.580 usd. Huaxin Cement advanced 1.45 pct to 2.305.

Property firm Shanghai Waigaoqiao Free Trade Zone Development rose 2.52 pct to 0.733 usd, while Shanghai Jinqiao Export Processing Zone Development gained 1.95 pct to 0.836 usd.

Shanghai Zhenhua Port Machinery, the heaviest weighted stock in the Shanghai B-share market, was up 0.28 pct at 1.444 usd.

In Shenzhen, China Fangda rose 9.09 pct to 3.12 hkd, while China Vanke, the country's top property developer

by market value, gained 2.16 pct to 9.45 hkd.

Credit Suisse said it maintained its 'overweight' rating on China's property sector despite June new home sales showing weakness in several key provincial cities, with a recovery possible by the fourth quarter.

Airlines were higher despite crude oil prices rising to a new high.

Hainan Airlines was up 2.21 pct at 0.601 usd and Shandong Airlines (SZB 200152) rose 0.59 pct to 3.42 hkd.

The FTSE/Xinhua China B 35 Index was up 94.35 points or 1.28 pct at 7,492.39.

The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, closed up 51.80 points or 1.95 pct at 2,703.53, off a high of 2,746.37 and a low of 2,566.53.

(1 usd = 6.9 yuan; 7.8 hkd)