Shares gained 1.69 percent on Thursday in light volume, rebounding slightly from the biggest dive in more than two months.
The benchmark Shanghai Composite Index opened lower and fell 2 percent to 3,345.93 points during the morning as rising world oil prices took their toll on the shares of heavyweights Sinopec and Petrochina. The index rebounded late in the day to close at 3,471.74, up 57.83 points.
Bank shares surged, boosted by the stronger yuan, which traded below 7 to the U.S. dollar for the first time since the currency peg was dropped.
The Industrial and Commercial Bank of China, which issued a forecast of more than 50 percent net profit growth, led the rise. It closed 2.83 percent higher at 6.18 yuan (about 0.88 U.S. cents). The Bank of Beijing gained 2.58 percent to 14.69 yuan.
Aviation shares, which would also benefit from a stronger yuan, rose. China Southern Airlines Company was up 4.87 percent to 15.71yuan, while Shanghai Airlines Co. rose 4.06 percent to 10 yuan.
Agricultural stocks performed well. Six shares in the sector rose by the daily trading limit of 10 percent, including Hefei Fengle Seed Co. and Xinjiang Sayram Modern Agriculture Co. They closed at 14.47 yuan and 12.93 yuan, respectively.
The Shenzhen Component Index closed at 13,286.68, up 207.87 points, or 1.59 percent. Combined turnover shrank to 95.69 billion yuan from 126.92 billion yuan on Wednesday.