Chinese stocks closed mixed on Wednesday, with the benchmark Shanghai Composite Index down 0.05 percent to close at 3,363.63 points.

The Shenzhen Component Index closed 0.48 percent higher at 10,813.93 points.

Combined turnover on the two bourses shrank slightly to 561.3 billion yuan (about 85.2 billion U.S. dollars) from 565.3 billion yuan the previous trading day.

Banking stocks retreated following strong gains recently, with some investors pocketing gains.

Industrial Bank dropped 2.14 percent to close at 17.82 yuan and Ping An Bank shed 2.06 percent to close at 11.43 yuan.

The stock market has been bullish this week, holding firmly above the 3,300-point-mark, a level previously seen as strong resistance.

The Shanghai index edged up 0.08 percent to close at 3,365.23 on Tuesday, following a 0.93 percent rise on Monday and a 1.83 percent increase on Friday.

Before Friday, the index had not closed above 3,300 points since Dec. 31, 2015.

As property sales and infrastructure investment gained momentum in August, shares in the coal and steel sectors surged with Yanzhou Coal Mining jumping 3.26 percent to close at 13.31 yuan.

The ChiNext Index, China's NASDAQ-style board, rose 0.38 percent to close at 1,838.63.