SHANGHAI - Chinese shares closed up 1.02 percent on Wednesday as sentiment remained stable after May inflation data largely matched market expectations, dealers said.

The Shanghai Composite Index, which covers A and B shares, was up 28.36 points to 2816.25 on turnover of 144.2 billion yuan ($30.8 billion).

China said Wednesday the producer price index fell 7.2 percent in May from a year earlier and the consumer price index fell 1.4 percent, almost in line with market expectations.

"The data shows China's economy is still far from a recovery but we are on the way to it," Wang Junqing, an analyst at Guosen Securities, told Dow Jones Newswires.

Other macroeconomic data including trade and fixed asset investment will be released later in the week.

"There is talk that fixed-asset investment data and industrial production are likely to be better than expected, which means the Chinese government may continue to increase investments in major industries," Capital Securities analyst Jacky Zhang said.

Such optimism boosted investors' buying interests in infrastructure and cement firms, traders said.

China Railway Construction rose 2.7 percent to 10.02 yuan and Anhui Conch Cement was up 6.2 percent at 41.97 yuan.

But real estate developers bucked the broad market uptrend on profit-taking.

China Vanke dropped 1.2 percent to 11.22 yuan after rising 17.2 percent since June 1, and Poly Real Estate closed down 5.0 percent at 24.31 yuan following a 19.7 percent gain over the same period.

The Shanghai A-share index rose 29.74 points, or 1.02 percent, to 2,956.16 on turnover of 143.8 billion yuan, while the Shenzhen A-share index gained 12.15 points, or 1.26 percent, to 979.16 on turnover of 71.9 billion yuan.

The Shanghai B-share index was up 2.22 points, or 1.22 percent, to 183.99, while the Shenzhen B-share index added 2.44 points, or 0.52 percent, to close at 470.11.