1st LD-Writethru: Chinese shares rebound on Tuesday

Chinese stocks rebounded on Tuesday from Monday's surprisingly big loss.

The benchmark Shanghai Composite Index was up 0.07 percent to 3,155.04 points. The smaller Shenzhen index closed 0.29 percent higher at 10,332.28 points.

The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, gained 0.03 percent to close at 1,985.04 points.

Turnover on the two exchanges shrank to 457.98 billion yuan (about 66.47 billion U.S. dollars) from 651.8 billion yuan the previous trading day.

Chinese stocks slumped on Monday as blue chips were knocked by fresh regulatory curbs to rein in insurers' aggressive stock investments, and rising bond yields prompted profit-taking in equities.

China's top insurance regulator announced Tuesday that companies insisting on "barbaric" behavior will be punished severely and the insurance industry should become the foundation of the nation's financial stability and booster of the real economy.

The country's better-than-expected industrial output also pleased the market. China's industrial output expanded 6.2 percent year on year in November, thanks largely to the electronic equipment and automobile sectors, official data showed Tuesday.

Concerns also rumbled over the imminent Fed interest rate hike.

State-owned enterprises led Tuesday's rally, with CSSC Offshore & Marine Engineering (Group) Company Limited rising 7.04 percent to 32.25 yuan and Cofco Tunhe Co., Ltd. up 7.45 percent to 12.7 yuan. Endi