An investor stands in front of an electronic board showing stock information at a brokerage office in Fuyang city, Anhui province, Sept 8, 2015. [Photo/IC]

Chinese shares rebounded on Tuesday as the benchmark Shanghai Composite Index surged more than 3 percent in afternoon trading, closing at 3,170.45 points, up 2.92 percent.

The Shenzhen Component Index gained 3.29 percent to close at 10,320.23 while the ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, soared by 5.68 percent to close at 2,001.16.

More than 300 companies' stock reached the 10 percent daily limit with public transportation, software and 3D printing sectors the driving force. During the afternoon session a strong buying sentiment dominated.

China meanwhile has scrapped dividend tax for long-term investors. The move is part of government efforts to promote long-term investment following the rout since mid-June.

The slew of easing measures demonstrates the government's determination to keep the market stable. Since individual retail investors dominate the market, the government's attitude is crucial, according to analysts at wlstock.com.

Xinhua contributed to the story.