The country's two biggest insurers China Life Insurance and Ping An Insurance gained 7.2 percent and 6.5 percent, respectively, on reports in state media that China's insurance regulator is planning to reduce limitations on insurers' investments in infrastructure bonds.

The utilities sub-index rose by 1.9 percent after the official Xinhua news agency reported that China's top economic planner will implement a new pricing scheme for residential electricity that will allow prices to rise.

The Shanghai Composite Index closed at 2,318.9 points.