Stocks rose for a sixth day, sending the benchmark Shanghai index to its longest winning stretch since May, as supportive measures to stem previous plunge got the upper hand.
The Shanghai Composite Index closed at 4,123.92, up 2.4 percent, while the Shenzhen Component Index climbed 2.5 percent to 13,754.53.
Eighteen real estate developers, including COFCO Property Group and Beijing North Star, jumped by the daily limit of 10 percent.
Telecommunication firms also led the gains, as Beida Jade Bird Huaguang Technology surged 10 percent, and Datang Telecom Group and Shenzhen Sunway Communication Co rallied 9.2 and 8.5 percent respectively.
Turnover reached nearly 1.4 trillion yuan on Thursday, despite some 531 companies still under suspension from trading, according to Bloomberg, equivalent to 18 percent of total listings.
The Shanghai gauge has rebounded 18 percent since bottoming out on July 8, with valuation recovering from a rout that once wiped out $4 trillion in market value.
Chinese regulators took a string of moves to shore up the market, which included suspending initial public offerings, banning major shareholders from selling, investigating into "malicious" short-selling and granting government agency liquidity to help finance stock purchases.
The outstanding balance of margin trades rose for a fourth day in Shanghai as of Wednesday, according to data by the bourse.
For offshore investors, the recent sharp correction and mild rebound in Chinese equities reveal a regulatory apparatus that is learning how to foster steady and rational corporate and investor behavior through effective public communication, clearly defined market-driven mechanism and proper law enforcement, said Wendy Liu, an equity analyst with Nomura, in a note on Thursday.
"We expect the MSCI-China to finish the year higher than its April peak and that the current bull market in the index will peak in 2017," added Liu.
