Chinese stocks gained Wednesday as investors weighed in on the effects of the reduction of the tariffs by both Beijing and Washington.

The Shanghai Composite Index, the main gauge of Chinese stocks, added 0.9% or 29.08 points to 3,403.95. The Shenzhen Component Index rose 0.6% or by 66.14 points to 10,354.22.

Investment banks have raised their economic growth forecasts for China. Goldman Sachs raised its outlook for China's real gross domestic product growth to 4.6% from 4%, the South China Morning Post reported Wednesday.

UBS also increased its GDP growth forecast for China to between 3.7% and 4% from 3.4%, while Morgan Stanley predicts China's second-quarter GDP growth could be better than its present 4.5% forecast, the report said.

In corporate news, Zelgen Biopharmaceutical (SHA:688266) closed 2% lower despite China's acceptance of its gecaxitinib hydrochloride tablets for severe alopecia areata.

InnoCare Pharma (SHA:688428) also slipped 2% during closing despite turning to a profit of 18 million yuan in the first quarter from a loss of 142.4 million yuan in the year-ago period.