Chinese stocks extended their gains on Wednesday to seven sessions, with the blue-chip index up 1.6 percent to its highest close since June 2015.

Shares in Chinese mainland extended their winning streak to the seventh session, as hopes of an economic recovery, regulatory and retail support sustained the market's unabating rally.

At close, the Shanghai Composite index was 1.7 percent higher at 3,403.44, its highest closing level since February 2018. The smaller Shenzhen index rose 1.9 percent and the start-up board ChiNext Composite index was higher by 2.3 percent, trading at its highest in almost five years.

The Shanghai index is up 11.6 percent and the blue-chip index CSI300 has risen 16.5 percent so far this year. Shanghai stocks are up 14 percent so far this month.

Also, Hong Kong stocks edged higher, ending near a four-month high hit in the previous session, as market sentiment was lifted on hopes of recovery in the Chinese economy after a seventh straight session of gains in mainland shares. 

At the close of trade, the Hang Seng index was up 0.6 percent at 26,129.18, near a four-month high hit on Tuesday. The "H-share" Hang Seng China Enterprises index rose 1.4 percent.

(With input from Reuters)