Chinese shares closed higher on Thursday, led by strong performance by artificial intelligence (AI) companies and the coal industry.

The benchmark Shanghai Composite Index went up 0.68 percent to close at 3,268.43 points, and the Shenzhen Component Index closed 0.5 percent higher at 10,653.73 points.

Trading slightly picked up, with combined turnover at the two bourses reaching 525.3 billion yuan (78.8 billion U.S. dollars).

Shares related to AI concept led the gains. Leading Chinese tech firm iFlytek Co. Ltd closed 2.43 percent higher to 59.5 yuan per share, and Chengdu Information Technology of Chinese Academy of Sciences Co. Ltd surged by the daily limit of 10 percent to end at 39.96 yuan.

Boosted by rising commodity prices, the coal industry did well, with Jianxin Mining Co. Ltd jumping 10 percent to close at 9.77 yuan.

Telecom giant China Unicom on Wednesday announced plans to bring in private investment mainly by issuing shares to companies including China Life and Tencent, a major step of the state firm's mixed-ownership reform.

The news gave a boost to companies planning similar reforms. China Nuclear Engineering and Construction Corporation surged 10 percent to end the day at 12.14 yuan.

The ChiNext Index, which tracks China's NASDAQ-style enterprises, gained 0.45 percent to close at 1,833.4.