FINANCE companies and the electrical sector fueled shares in Shanghai to rebound 1.06 percent yesterday after they had slumped more than 5 percent a day earlier.

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard currency B shares, jumped 24.6 points to 2,344.47.

Gainers outnumbered losers 651 to 203 with 53 stocks unchanged. Turnover shrank to 27.7 billion yuan (US$4 billion).

The Shenzhen Composite Index, which tracks the Chinese mainland's smaller bourse, rose 1.39 percent to 665.22 from a day earlier.

But Wang Antian, an analyst with Guohai Securities Co Ltd, said the market rebound ''failed to be underpinned'' by strong fundamentals.

''The overall market is still weak in terms of transaction volume and rotational buying of stocks will not be strong enough to create a sustained upbeat sentiment," Wang said.

Shares in the electrical sector led gains after an official from the National Energy Administration said China is likely to adjust coal and fuel prices after the Olympics.

Shanghai Electric Power Co Ltd surged to the 10-percent daily limit and closed at 4.02 yuan. Chongqing Fuling Electric Power Industrial Co Ltd rose 10 percent to 4.91 yuan.

Among blue chips, the Industrial and Commercial Bank of China, the country's top listed lender, rose 1.1 percent to 4.60 yuan. China Merchants Bank surged 3.21 percent to 21.89 yuan.