The combined turnover of China's Shanghai and Shenzhen bourses reached 2.14 trillion yuan (about 302.5 billion U.S. dollars) on Thursday, marking the fourth consecutive trading day with volume exceeding 2 trillion yuan.
The benchmark Shanghai Composite Index was up 1.32 percent to 3,301.93 points, while the Shenzhen Component Index closed 0.82 percent lower at 10,471.08 points.
Shares related to coal, wind power and banking sectors led the gains, while the semiconductor, securities and property sectors suffered major losses.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 2.95 percent to close at 2,212.91 points Thursday.
China's central bank announced Thursday that it has decided to set up Securities, Funds and Insurance Companies Swap Facility (SFISF), with the initial scale of 500 billion yuan (about 71 billion U.S. dollars) for "the healthy and steady development of the capital market."
The SFISF, which is the first monetary policy tool created by China to support the capital market, will allow eligible securities, funds and insurance companies to use their assets including bonds, stock ETFs and holdings in constituents of the CSI 300 Index as collateral in exchange for highly liquid assets such as treasury bonds and central bank bills, the People's Bank of China said in a statement.
This development sparked interest in high-dividend stocks, with stocks controlled by state capital collectively rising.
More than 10 stocks including Metallurgical China (601618.SH), China Railway Group Ltd. (601390.SH) and COFCO Capital (002423.SZ) hit limit up.