Shanghai stocks closed up 4.89 percent on Wednesday, halting a two-day slump, as investors returned to the market amid speculation of state-led buying, dealers said.

The benchmark Shanghai Composite Index surged 147.09 points to 3,152.26 on turnover of 282.0 billion yuan ($44.3 billion). The Shenzhen Composite Index, which tracks stocks on China’s second exchange, jumped 6.52 percent, or 103.10 points, to 1,683.36 on turnover of 284.8 billion yuan.