Chinese shares rose for a third straight day on Thursday, led by strong gains by blue-chip stocks.

The benchmark Shanghai Composite Index grew 0.43 percent to close at a three-month high of 3,244.86 points.

The Shenzhen Component Index climbed 0.69 percent to 10,366.98 points.

With the gains, the main indexes erased losses from Monday, when investors panicked amid a sell-off in start-ups.

The ChiNext Index, China's NASDAQ-style board of growth companies, gained 0.23 percent to close at 1,688.61.

Shares in the electricity, graphene and insurance sectors led the gains, while stocks related to coal and steel were among the major losers.

Property shares rose across the board after one of the country's largest ever property deals was inked Wednesday by Wanda Commercial Properties, Sunac China and R&F Properties.

The artificial intelligence sector also posted a strong performance in the stock market, with Iflytek. Co., Ltd., a firm devoted to speech and language technology, rising by 8.86 percent.

On Thursday afternoon, the State Council, China's cabinet, released development plans for artificial intelligence, aiming to expand the sector's overall industrial value to more than one trillion yuan (about 677 billion U.S. dollars) by 2020.