Chinese shares rose 1.71 percent Wednesday, led by the country's two largest oil producers, on market expectation that the government would raise gasoline retail prices.

PetroChina, the largest oil producer, surged 4.35 percent to close at 13.66 yuan. It overtook Exxon Mobil Monday to become the world's largest company by market value.

The second largest, Sinopec, added 2.37 percent to 10.38 yuan after crude price for July delivery hit a six-month high of 62.45 U.S. dollars a barrel in New York Tuesday.

The benchmark Shanghai Composite Index rose 1.71 percent, or 44.36 points, to close at 2632.93. The Shenzhen Component Index was up 1.05 percent, or 105.62 points, to 10,127.92.

Combined turnover shrank to 161.26 billion yuan (23.61 billion U.S. dollars) from 192.2 billion yuan the previous trading day.

Gainers led losers by 440 to 417 in Shanghai and 414 to 339 in Shenzhen.

Banking sector also led the gains driven by news that the Central Huijin, an investment arm of the sovereign wealth fund, announced Tuesday that it would continue to buy in China Construction Bank (CCB) in the secondary market in the following 12 months.

The CCB added 2.69 percent to clsoe at 4.58 yuan, and the other two state-owned listed banks, the Industrial and Commercial Bank of China and the Bank of China, increased by more than 2 percent.

China Minsheng Banking Corp., the country's first private bank, surged 6.85 percent to 6.71 yuan. Fujian-based Industrial Bank rose 5.1 percent to 28.44 yuan.

Chinese shares have gained more than 6 percent since the last trading day of April. It will suspend trading as of Thursday because of a three-day holiday, and will resume trading on Monday.

Source: Xinhua