Trading in the Chinese market is likely to remain cautious ahead of key May industrial production data due for release on Saturday.
The benchmark Shanghai Composite slipped 0.10 percent to 2309.56 on Wednesday, while turnover shrank.
The Taxation Administration outlined details of 33 preferential tax policies related to private investment in six areas: infrastructure; utilities and public housing; social services; financial services; commerce and logistics; innovations. The move is an extension of Beijing's drive to spur private investment and achieve economic rebalancing, but skeptics have questioned the efficacy of such a push in light of the state's dominant role in the economy.
Stocks to Watch:
Banking Stocks - The Chinese cabinet approved plans to start the Basel III capital requirements for banks on Jan. 1, 2013. The requirements were originally slated for commencement in July. Systemically important banks are required to have capital adequacy ratios of 11.5 percent, other banks need to have 10.5 percent. Analysts do not expect the new rules to lead to a wave of fundraising activity by banks. Chinese commercial banks' average capital adequacy ratio at the end of the first quarter stood at 12.7 percent.
Poly Real Estate - Poly, one of China's top 10 developers, said May sales rose 45 percent to 10.7 billion yuan ($1.7 billion). Property sales rebounded in China last month due to increased supply, price discounts, and some local governments' fine-tuning of Beijing's property curbs.
Xiamen Tungsten - The firm's shares will resume trading on Thursday after clarifying that it was a sister firm that had discovered the world's largest tungsten mine worth $47 billion, contrary to earlier reports. Tungsten related plays rallied on Wednesday on news of the find. Xiamen Tungsten contributes around a third of China's tungsten exports.
Faw Car, Faw Xiali - Faw VW, the joint venture between China's First Automotive Works Group (parent of the listed automakers) and Volkswagen, confirmed that its deputy sales chief Jing Guosong is being investigated after one of his subordinates jumped to his death last week.
—By Cheng Lei, CNBC Asia Pacific