SHANGHAI, Nov 16 (Reuters) - China stocks reversed early losses and ended higher on Monday, as the market regained its footing after being hit by anxiety stemming from the deadly attacks in Paris.
Morning sentiment was also weak also because regulators tightened margin financing requirements over the weekend, but some investors who missed the recent rally used the correction as a chance for bargain hunting.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 0.5 percent, to 3,764.13, while the Shanghai Composite Index gained 0.7 percent, to 3,606.96 points.
Analysts warned of volatility ahead.
"Terror in Paris heralds further global uncertainties," wrote Hong Hao, managing director and chief China strategist at BOCOM International.
The market apparently drew some support from expectations the International Monetary Fund will add the yuan to the basket of official reserve currencies later this month. The move will likely increase the appeal of yuan-denominated assets.
Most sectors reversed early losses in the afternoon but transportation stocks remained down, with airline operators including China Eastern and Air China slumping amid concern the Paris attacks would deter people from travelling overseas. (Reporting by Samuel Shen and Pete Sweeney; Editing by Richard Borsuk)