The Shanghai market ran high led by heavy weights in the morning session after US stocks closed high the previous day.
The benchmark Shanghai Composite Index added 27.80 points, or 1.18 percent, to close at 2,377.94 points. Gainers outnumbered losers 791 to 71 while 55 remained unchanged. Turnover was 1.44 billion yuan (US$0.21billion).
The Shenzhen Composite Index, which tracks the smaller domestic stock exchange, increased 1.12 percent to 7,904.66 points.
The United States saw a GDP growth of 3.3 percent on the second quarter, faster than the 1.9 percent forecast, which pushed both Nasdaq and Dow Jones Industrials higher yesterday.
Industrial & Commercial Bank of China, the nation's biggest lender, added 0.62 percent to 4.9 yuan. Bank of Communications Ltd, China's fourth-largest publicly traded bank, increased 1.74 percent to cose at 7.59 yuan.
Local shares in Shanghai are among the gainers. Shanghai Kai Kai Industry Co Ltd surged 8.75 percent to 7.33 yuan. Shanghai Belling Co Ltd hiked 5.34 percent to 4.14 yuan.
Baoshan Iron & Steel Co Ltd advanced 3.18 percent to 6.48 yuan.
China Petroleum & Chemical Corp, Asia's largest refiner, also known as Sinopec, edged up 0.48 percent to close at 10.16 yuan. PetroChina, the biggest index component, increased 0.46 percent to 13.03 yuan.
Fund management companies in domestic markets posted a combined loss of 1.1 trillion yuan (US$158.4 billion yuan), down from the 1 trillion yuan profit at the end of last year, according to a report by China Securities Journal. Sinolink Securities Co Ltd dipped 0.1 percent to 30.80 yuan. Hong Yuan Securities Co Ltd added 1.38 percent to 13.18 yuan on Shenzhen exchange.
"The index is likely to remain in correction for quite a long time as investors need time to gain confidence in the market," according to Wan Bing, an analyst with GF Securities.
