China A-shares closed off the day's lows as property developers gained on talk of government support measures, including a cut in interest rates, dealers said.

Banks clawed back some of their initial losses following tumbles on world markets as the global credit crisis continued to unravel.

Brokerage firms fell sharply after posting strong gains yesterday on hopes for launch of margin trading.

Resources stocks continued their slide amid worries that slowing global growth will reduce demand for energy and raw materials.

The benchmark Shanghai Composite Index closed down 15.90 points or 0.73 pct at 2,157.84 points, off a low of 2,072.90.

Turnover fell slightly to 47.17 bln yuan from 47.35 bln yesterday.

Dealers said a rebound in property firms and some large banks helped the market come off its lows.

Hopes for government moves to stabilise the real estate market, as the Communist Party's Central Committee begins a plenary session later this week, lifted property stocks.

"Expected interest rate cut also spurred buying interest in the sector," said Zhang Gang, an analyst with Central China Securities.

Australia's central bank today announced a full one percentage point cut in its key rate, its biggest cut in 16 years, spurring hopes that other major global central banks will also lower rates to mitigate the fallout of the credit crisis

Analysts say China may cut interest rates as the economy is facing huge pressure from both external and internal factors, with receding inflation providing room for lower rates.

People's Bank of China governor Zhou Xiaochuan was quoted as saying yesterday that that the central bank will focus on maintaining the yuan's stability in its monetary policies and macro-economic controls.

Zhou also said the central bank will make efforts to help boost employment and consumption.

"A broader shift in the government's policy stance is also expected," said Wu Binghua, an analyst with Tebon Securities.

He expects the market to stabilize later this week as governments around the world step in to shore up their financial systems.

China Vanke, the country's top property developer by market value, rose 4.78 pct to 6.57 yuan and Poly Real Estate surged 6.18 pct to 15.30 yuan.

The three large commercial banks in which China's sovereign wealth fund bought two mln A-shares each late last month ended higher.

ICBC added 2.21 pct to 4.16 yuan, China Construction Bank (CCB) was up 0.03 yuan or 0.68 pct at 4.47 and Bank of China (BOC) gained 0.02 yuan or 0.57 pct to 3.50.

Central Huijin, an investment arm of the sovereign wealth fund, plans to raise its stake in the banks further within the next 12 months.

"We do not see much room for banks to fall further as Huijin will continue to buy more shares in banks," said an analyst from Dong Hai Securities.

China Merchants Bank was down 1.70 pct at 15.59 yuan after a 10 pct loss yesterday.

Ping An Insurance (Group) Co of China fell 4.37 pct to 31.94 yuan after news of its huge investment losses related to Belgian-Dutch financial group Fortis.

Ping An announced that it will take a 15.7 bln yuan charge in its third quarter results from its investment in Fortis. The Chinese insurer holds about 5 pct stake in the troubled European group.

CITIC Securities, the country's largest listed broker, fell to 22.28 yuan after a one-day suspension and Haitong Securities (SHA 600837) closed at 21.30 yuan. Both fell by the 10 pct daily limit.

Aluminum Corp of China (Chalco), the country's largest producer of aluminum and alumina, slid 3.37 pct to 8.32 yuan after projecting third quarter profit to have fallen more than 50 pct from the year-earlier level.

China Shenhua Energy shed 6.25 pct to 23.11 yuan, extending a 10 pct drop yesterday, while Baoshan Iron & Steel fell 3.32 pct to 6.41 yuan.

PetroChina, the biggest index component, edged down 0.02 yuan or 0.16 pct to 12.17, while China Petroleum & Chemical Corp (Sinopec) rose 1.80 pct to 10.17 yuan.

Airlines benefited from lower crude oil prices, with China Eastern Airlines gaining 6.42 pct to 4.64 yuan.

Air China added 3.39 pct to 6.10 yuan and China Southern Airlines jumped 6.23 pct to 3.92 yuan.

The Shanghai A-share Index fell 16.72 points or 0.73 pct to 2,266.10, while the Shenzhen A-share Index was down 5.14 points or 0.83 pct at 615.61.

The FTSE/Xinhua China A 50 Index was down 106.33 points or 1.37 pct at 7,651.48 and the FTSE/Xinhua China A 200 Index fell 71.49 points or 1.20 pct to 5,871.96.

(1 usd= 6.83 yuan)