Chinese equities closed modestly higher at midday Wednesday, lifted by a better reading of the manufacturing industry in August.

The benchmark Shanghai Composite Index rallied 3.59 points, or 0.14 percent, to end the morning session at 2,642.38.

The Shenzhen Component Index rose 10.25 points, or 0.09 percent, to close the morning session at 11,348.96.

The Purchasing Managers' Index (PMI) of China's manufacturing sector rose to 51.7 percent in August from 51.2 percent in July, ending a three-month falling streak, the China Federation of Logistics and Purchasing said Wednesday.

Most analysts had expected the PMI to be around 51.5 percent for August.

It was the 18th straight month that the index was above 50 percent. A reading above 50 percent indicates an expansion in manufacturing activity, while that below 50 percent suggests contraction.