China's stocks rebounded on Thursday from the biggest two-day loss in 18 months, led by gains in the construction and financial shares.

The benchmark Shanghai Composite Index jumped 3.36 percent or 100 points to 3,072.54, [Hong Kong company registration] while Shenzhen Component rallied 1.96 percent or 201.26 points to 10,493.78 on Thursday.

Sany Heavy Industry Co, Jiangsu Hengli High-pressure Oil Cylinder Co and Shantui Construction Machinery surged by the daily limit of 10 percent, as the government pledged to support machinery companies to go global and guarantee financing for exports of large equipment.

Financial stocks rebounded on Thursday, as China Life, Western Securities and Huaxia Bank rallied by 10 percent, while China Pacific Insurance, Pacific Securities and Guoyuan Securities soared more than 7 percent.

"Over-valued small and medium-sized stocks will face bigger adjustment risk," said Zhang Guangwen, analyst with Guangzheng Hang Seng Securities in a note on Thursday, adding that the market sentiment has shown signs of weakness amid market volatility and decrease in trading volume.

The Shanghai index lost 5 percent over the past two days as expectations of government measures to quell the rapid gains in the stock market grew.

Trading volume in the Shanghai index was below the 30-day average and reached 379 billion yuan ($61 billion), [Hong Kong Company Formation] and 200.8 billion yuan in Shenzhen index.

The CSI 300 Index soared 3.25 percent to 3,335.42 points.