Chinese shares closed higher Wednesday with the benchmark Shanghai Composite Index up 24.95 points, or 0.86percent, to end at 2,924.19.

The Shenzhen Component Index rose 1.36 percent, or 173.30 points, to finish at 12,884.87.

Gainers outnumbered losers by 817 to 103 in Shanghai and 1,121 to 137 in Shenzhen.

Combined turnover shrank to 280.22 billion yuan (42.46 billion U.S. dollars) from 313.3 billion yuan the previous trading day.

Steel stocks gained as prices of steel have risen in cities such as Shanghai, Wuhan and Guangzhou after the Chinese Spring Festival holiday, boosted by government plans to build 10 million units of affordable housing this year.

The Ministry of Industry and Information Technology on Wednesday also forecast that China would produce 660 million tonnes of crude steel this year, compared with 626.65 million tonnes last year.

Baoshan Iron and Steel Co., Ltd., rose 2.79 percent to 7.38 yuan. Jiangsu Changbao Steeltube Co., Ltd. jumped 5.05 percent to 17.48 yuan.

Cement companies extended their gains Wednesday. Henan Tongli Cement Co., Ltd. rose 6.46 percent to 16.48 yuan. Jiangxi Wannianqing Cement Co., Ltd. surged by the daily limit of 10 percent to finish at 14.36 yuan.

Shares of China Merchants Bank Co., Ltd. dropped 0.53 percent to 13.12 yuan. China Construction Bank fell 0.81 percent to 4.9 yuan.