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Chinese Stocks Rally on Thin Volume as Financial Companies Climb

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China’s stocks rebounded from the biggest drop in a month as financial companies advanced and turnover waned before year-end holidays.

The Shanghai Composite Index gained 0.9 percent to 3,563.74 at the close after meandering in the morning session on volumes 30 percent below the 30-day average. The gauge tumbled 2.6 percent on Monday after data showed falling industrial company profits and concern grew that a new system for initial public offerings will weaken demand for existing stocks. Dongxing Securities Co. led gains by brokerages.