Chinese shares climbed to a new high on Wednesday, boosted by strong property and agriculture shares and close-ended fund that rose sharply.

The benchmark Shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares gained 63.33 points to 4,173.71 points.

The smaller Shenzhen Component Index closed at 12,624.13 points, up 216.29 points from the previous close.

The combined turnover of the two bourses stood at 336.206 billion yuan (43.7 billion U.S. dollars), lower than Tuesday's 380.5 billion yuan (49.4 billion U.S. dollars).

Property stocks continued to lead the rally as investors still felt confident in the gaining prospects. Agriculture shares were propped up by price hikes of staples such as meat, fish and eggs. Banks also enjoyed the upturn on Wednesday.

The close-end fund, propelled by stock index futures trading and alluring dividend expectations, saw sharp rise on the third trading day this week.

Most of the Special Treatment (ST) stocks, namely shares of companies that have failed to earn money two years running or have been fingered for false accounting, rose to the daily limit of 10 percent.

An analyst with China Securities Research Co., Ltd suggested investors to buy more closed-end fund as the current market vibration trend brought good opportunities.

Shang Fulin, director of the China Securities Regulatory Commission (CSRC), has said that in a bid to balance demand and supply on the red-hot stock market, the CSRC would shorten the IPO approving process to attract overseas-listed Chinese companies to return to the mainland market.

Analysts said this showed China's securities watchdog would continue to use the "market instrument" to deal with the stock market and held that the moderate rise was healthy.

Source: Xinhua