The benchmark Shanghai Composite Index, which covers A and B-shares, closed up 3.95 points or 0.35 percent at 1,127.51.
"The market continued to gain ground on the back of fund inflows, with institutional investors, especially fund management firms, expected to build more positions ahead of the year end," said Wang Mingzhi, an analyst at GF Securities.
"But there are also worries over possible new macro-economic control measures after still high investment growth and some overcapacity problems," the analyst said.
Sydney
Sydney share prices closed 0.35 percent higher, led by the banks after struggling to find direction during most of the day.
Dealers said St George led the banks upwards after announcing a share buy back program and providing an upbeat outlook at its annual general meeting. St George added 0.75 dollars or 2.64 percent to 29.15.
The S&P/ASX 200 index closed up 16.1 points at 4,644.0.
Singapore share prices closed down 0.01 percent on thin volumes in the absence of solid trading leads and a faltering Wall Street, with slight profit-taking in ST Engineering, dealers said.
They said the outlook for the market was still positive, and that a year-end rally was possible amid the position squaring which is currently going on.
The Straits Times Index closed down 0.2 points at 2,325.5.
In Kuala Lumpur share prices closed 0.18 percent lower in a market that was bereft of fresh leads, which included an uninspiring performance by Wall Street overnight.
The Composite Index shed 1.61 points to 893.37.
Bangkok share prices closed flat due to the absence of foreign investors amid light trading as investors square-off positions in the lead up to the new year. The Composite Index edged up 0.68 points to 691.17.
In Jakarta share prices closed 1.08 percent lower for a third straight day on continued profit-taking and as the rupiah's retreat against the dollar hurt sentiment in blue-chips. The composite index closed down 12.538 points at 1,143.426.
Manila share prices closed 1.16 percent lower as lingering political jitters triggered selling in blue chips for the second straight session. The composite index ended down 24.11 points to 2,047.56.
Wellington share prices jumped 1.44 percent higher following strong gains by market leader Telecom and exporters seen benefitting from a weaker local currency.
"Bargain hunters have really come into this market today, in reaction to the New Zealand dollar falling overnight. I think they are looking at stocks that are going to benefit from a falling dollar," Hamilton Hindin Greene partner Grant Williamson said.
The NZSX-50 gross index rose 47.23 points to 3,281.90.
Mumbai
Mumbai share prices surged 1.24 percent to close at a new record high on across-the-board foreign and domestic fund buying amid sustained expectations of strong economic growth.
"Hectic buying was evident again in most sectors," said Mehul Desai, a dealer at Nishit Stock Trade and Investments.
"Foreigners and domestic investors turned buyers given the strong undertone triggered by a robust economic growth expectations for the second half to March," Desai said.
The 30-share SENSEX index rose 114.06 points to 9,284.86.
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