SHANGHAI (AP) -- China's shares rebounded Monday as concern over Dubai World's debt problems abated and the Chinese government said it would continue easy credit policies.

The benchmark Shanghai Composite Index jumped 99.04 points, or 3.2 percent, to close at 3,195.3. The Shenzhen Composite Index for China's smaller second exchange gained 4.2 percent to 1,185.94.

Chinese markets were rattled by Dubai World's request for a delay in repaying billions of dollars in debt. But investor concerns eased when the United Arab Emirates government pledged Sunday it would make extra money available to the country's banks.

"The refreshing news has led to a technical rebound. People having sold earlier maybe are building new positions," said Gabriel Gondard, deputy chief investment officer of Fortune SGAM Fund Management Co. in Shanghai, which oversees about $7.2 billion assets.

Other analysts said a pledge Friday by Chinese leaders of continued easy credit following an annual planning meeting also gave the market a boost.

"It cleared market confusion and reinstilled confidence that the country won't quit the stimulus," said Zhou Yu, an analyst for Pacific Securities in Beijing.

Industrial & Commercial Bank of China Ltd., China's biggest commercial lender, edged up 1 percent to 5.32 yuan. Bank of China Ltd. gained 2 percent to 4.12 yuan.

Consumer goods stocks gained after the government said it would take steps to boost consumer spending next year. Liquor maker Kweichow Moutai Co. surged 5.3 percent to 173.91 yuan, while Suning Appliance Co., a home appliance retailer, advanced 7 percent to 18.98 yuan.

Automakers rose on news the government might extend sales tax cuts and subsidies to next year. SAIC Motor Corp, the local partner of General Motors Co. and Volkswagen AG, soared 7.5 percent to 25.37 yuan.

In currency markets, the yuan weakened to 6.8374 to the U.S. dollar, down from Friday's close of 6.8298.