Chinese shares rose 2.78 percent Wednesday, the first time in four trading days, led by gains of banks and Shanghai local shares.

The benchmark Shanghai Composite Index advanced 2.78 percent, or 66.75 points, to close at 2,468.19 points. The Shenzhen Component Index gained 3.06 percent, up 278.91 points, to 9,383.21 points.

Gainers outnumbered losers by 786 to 80 in Shanghai and 649 to 84 in Shenzhen.

Combined turnover climbed to 179.16 billion yuan (26.25 billion U.S. dollars) from 137.42 billion on the previous trading day.

Banking shares led the gains after the China Insurance Regulatory Commission said Wednesday at a conference that China's State Council, or the Cabinet, had allowed banks to take stakes inthe country's insurance companies.

Industrial Bank Co. rose 7.95 percent to end at 23.75 yuan. Shanghai Pudong Development Bank gained 9.55 percent to 23.06 yuan.

Local shares in Shanghai posted robust growth, boosted by the government's plan to build up the city as a financial and transportation center.

Shanghai Cimic Tile Co., a provider of building materials, electronics and household paper, rose 9.94 percent to 7.08 yuan. Shanghai Industrial Development Co. grew 8.65 percent to 13.69 yuan.

Property shares rose as Gao Hua Securities in Beijing said housing sales remain high in the fourth week of April.

Vanke A-share rose 4.01 percent to 8.30 yuan and Poly Real Estate Group was up 5.87 percent to 23.45 yuan.

Sinopec,the country's top refiner, advanced 2.86 percent to 9.71 yuan after saying its net profit in the first quarter of this year rose 85.1 percent year on year.

China Shenhua Energy Co. added 3.08 percent to 24.74 yuan after reporting a 17 percent increase in its first-quarter profit.