Beijing - China's main stock market index rebounded with a rise of 3.65 per cent on Monday following its worst-ever week.

The key Shanghai Composite Index, which tracks shares traded in local and foreign currencies, gained 73 points to finish at 2,073.57 after an initial slump of 3.44 per cent in morning trading.

The smaller Shenzhen Component Index also jumped by about 3 per cent as analysts said investor sentiment was boosted by optimism following the release of an economic report by the ruling Communist Party on Sunday.

The report promised "flexible and careful macroeconomic policies" with efforts to boost domestic demand and stabilize the financial sector and the capital market.

It said China's overall economic situation and growth prospects remained good despite some "notable contradictions and problems".

The Shenghai and Shenzhen stock indices both fell for five consecutive days of trading before Monday, losing a total of about 12 per cent last week. (dpa)