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SHANGHAI, Dec 13 (Reuters) - China stocks erased early losses to end roughly flat on Tuesday, as better-than expected November retail sales and factory output data encouraged bargain-hunting after the previous session's slump.
The blue-chip CSI300 index fell 0.1 percent, to 3,405.04 points, while the Shanghai Composite Index rose 0.1 percent to 3,155.04 points.
On Monday, China stocks suffered their biggest drop since June to hit a one-month low. Investors were rattled by fresh regulatory curbs on insurers' stock investments, and worries about incoming U.S. president Donald Trump's China policy.
The selloff continued early Tuesday morning, but sentiment improved after the release of stronger-than-expected factory output and retail sales figures.
China posted its strongest retail sales growth of the year in November, while surging steel production lifted factory output, but private investment began to slow again, leaving the economy more reliant on state spending and mounting debt.
Shenzhen shares outperformed, with the Shenzhen benchmark index rising 0.3 percent.
Most sectors rallied, led by consumer and energy shares, while banks and infrastructure stocks lagged. (Reporting by Luoyan Liu and John Ruwitch; Editing by Richard Borsuk)