Trade talks optimism boosted Chinese shares as Blue chip and Shanghai hit high

China stocks ended at an over one-year high on Thursday, with the blue-chip index rising for a fourth straight week as investors cheered progress in trade talks and Beijing's policy stimulus to bolster growth.

Chinese markets will be closed on Friday for a holiday. The blue-chip CSI300 index rose 1.0 per cent, to 4,062.23 points, while the Shanghai Composite Index climbed 0.9 per cent to 3,246.57 points.

For the four-session week, SSEC was up 5.6 per cent, while CSI300 gained 4.9 per cent. China will cut government-related fees and service charges to reduce costs for companies and individuals from July 1, state media said on Wednesday, part of a wider pledge to pare trillions in taxes and fees this year.

Hopes for a trade deal between the world's top two economies continued to bolster sentiment. Trade talks between the United States and China made "good headway" last week in Beijing and the two sides aim to bridge differences during talks that could extend beyond three days this week, White House economic adviser Larry Kudlow said.

Most sectors rallied, led by transport firms, as major airlines surged on Beijing's pledge to cut burdens for the civil aviation industry. Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.37 per cent, while Japan's Nikkei index closed up 0.05 per cent.

At 0715 GMT, the yuan was quoted at 6.715 per U.S. dollar, 0.09 per cent weaker than the previous close of 6.7093. The largest percentage gainers in the main Shanghai Composite index were Shanghai Tianchen Co Ltd, up 10.05 per cent, followed by Shanghai International Port Group Co Ltd, gaining 10.05 per cent and Shanghai New Huang Pu Real Estate Co Ltd, up 10.04 per cent.

The largest percentage losses in the Shanghai index were PNC Process Systems Co Ltd down 6.87 per cent, followed by Shanghai Sunglow Packaging Technology Co Ltd losing 6.81 per cent and Shanghai DZH Ltd down by 6.44 per cent. So far this year, the Shanghai stock index is up 30.2 per cent and the CSI300 has risen 34.9 per cent, while China's H-share index listed in Hong Kong is up 15.2 per cent. Shanghai stocks have risen 5.04 per cent this month.

About 46.91 billion shares were traded on the Shanghai exchange, roughly 112.1 per cent of the market's 30-day moving average of 41.85 billion shares a day. The volume in the previous trading session was 43.05 billion. As of 0716 GMT, China's A-shares were trading at a premium of 26.33 per cent over the Hong Kong-listed H-shares.