China stocks rebounded sharply in afternoon trading to close up on Tuesday, as speculation that coronavirus control measures could be eased in some pilot areas led to buying in the tourism and consumer goods sectors, while sentiment was boosted more broadly by expectations of policy support for the economy.

The blue-chip CSI300 index rose 2.0%, to 4,179.97, while the Shanghai Composite Index gained 1.5% to 3,213.33 points.

** Tourism stocks surged 8.4%, transport firms soared 5.1%, while consumer staples added 3.9%.

** An unverified document about picking pilot regions including Shanghai for looser quarantine requirements is circulating and traders say it pushed up related sectors.

** New bank lending in China rose more than expected in March, while broad credit growth accelerated from the previous month.

** "Strong credit supply is helpful, but the economy will likely stay weak with many cities under lockdown," said Zhiwei Zhang, chief economist at Pinpoint Asset Management, adding that the COVID outbreaks and the zero tolerance policy were the most important uncertainties faced by the economy.

** Mainland China reported 1,272 new confirmed coronavirus cases and 23,387 new asymptomatic cases on April 11.

** China will step up the implementation of macro policies as the downward pressure on the economy is increasing, state media on Monday quoted Premier Li Keqiang as saying.

** China is also encouraging long-term investors to buy more equities and major shareholders of listed firms to increase their holdings when stocks slump.

** Inflows through the northbound leg of Stock Connect totalled 12.3 billion yuan ($1.93 billion) on the day, according to Refinitiv data.,

** Liquor makers rose 6.1%, led by a 10% jump in Shanxi Xinghuacun Fen Wine after it said it expected a 70% year-on-year jump in Q1 net profit.

** Online gaming stocks gained as authorities granted licences to 45 internet games in April, the first time since July. The anime comic game subindex closed up 2.4%.

** Morningstar analysts said this "should bring much-needed relief to a sector that has been shaken by negative headlines."

** However, real estate developers slumped 3.4%.


(Reporting by Shanghai Newsroom; Editing by Simon Cameron-Moore)