Singapore shares closed 0.73 percent higher on Wednesday, following talks of liquidity injection into China's five largest banks by People's Bank of China (PBoC).

A report from Sina.com that China's central bank was pumping more liquidity into the country's five largest banks. The report cited a banking analyst as saying that the People's Bank of China would provide 100 billion Chinese yuan to each bank for a three month period. Societe Generale Research said the "standing lending facility" is equivalent to a 50 basis point cut to the reserve requirement ratios for three months. The latest action indicated China was ready to add more stimulus given recent weakness in housing, imports and industrial output.

Investors also speculated the U.S. Federal Reserve would maintain a pledge on low rates when a two-day policy meeting ends later in the session. The U.S. central bank would keep the words " considerable time" in its policy statement, though it might qualify them. The phrase has become a touchstone in markets for when the Federal Reserve might start raising interest rates and dropping it would be taken as a hawkish step.

The benchmark Straits Times Index rebounded 23.86 points to close at 3,296.48 points. Trading volume was 1.36 billion shares worth 925 million Singapore dollars. Advancers outnumbered decliners 274 to 144, while 521 stocks closed unchanged.

DBS Group Research said "the decline creates bargain hunt opportunities for index component stocks that were sold down most, " adding that "Immediate resistance at 3,310 points followed by 3, 355 points."

Keppel Corporation gained 1.1 percent to 10.57 Singapore dollars. It has secured a contract from repeat customer, Gulf Drilling of Qatar to build a jack-up rig worth 227 million U.S. dollars. The contract comes with options for two more rigs for deliveries in 2017. Upon delivery in the first quarter of 2016, the jack-up will be chartered to Qatar Petroleum for five years. In addition to jack-ups, Keppel's shipyard in Qatar is also supporting Gulf Drilling with the construction of a lift-boat and the repair and maintenance of their rig fleet.

Singapore Medical Group closed flat at 18.8 Singapore cents. It announced that its flagship clinic, The LASIK Surgery Clinic (LSC), is the first and only private healthcare provider to acquire the ZEISS Femtosecond Laser System and to offer the latest laser vision correction procedure. Since its inception in 2005, LSC has to date performed more than 75,000 refractive surgeries and remains as one of the largest and most established private laser vision correction centers in Singapore.

Among the top gainers, Jardine Cycle and Carriage rose 0.5 percent to 43.40 Singapore dollars, whereas Petra Foods became one of the top losers by falling 1 percent to 3.96 Singapore dollars. (1 U.S. dollar equals to 6.143 Chinese yuan and 1.26 Singapore dollars)