China shares rebound with biggest gain in 2014

HONG KONG, Jan 21 (Reuters): China shares posted their biggest daily gain of the year on Tuesday, rebounding from a six-month low, as cash rates eased in the mainland after the Chinese central bank offered emergency funds to ease the latest cash squeeze.

China's money market rates fell sharply on Tuesday after the People's Bank of China dumped more than 255 billion yuan ($42 billion) into the financial system, easing concerns that another credit crunch was underway less than a month after a late December squeeze.

The CSI300 of the largest Shanghai and Shenzhen A-share listings finished up 1 per cent, led by financials, after closing on Monday at its lowest since July 9.