China stocks choppy in post-holiday trade

Philippe Lopez | AFP | Getty Images

Chinese stocks wavered between gains and losses on Wednesday, the first trading session after a week-long holiday closure.

The benchmark Shanghai Composite opened 0.2 percent higher at 2,366 and was choppy over the course of the session. It closed unofficially up 0.8 percent. Hong Kong stocks, meanwhile, opened down 0.8 percent and hovered around this level to close provisionally down 0.7 percent.

The mainland market's closure from October 1 to 7 coincided with mass pro-democracy demonstrations in Hong Kong that paralyzed parts of the financial hub. However, Chinese investors appear unfazed by developments in the semi-autonomous territory.

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"Chinese investors are more concerned with developments onshore rather than in Hong Kong. Over the Golden Week holidays there was an important change in housing policy, with a major relaxation of mortgage policies. This is positive for the Chinese growth outlook," Dariusz Kowalczyk, strategist at Credit Agricole told CNBC.

Last week, China announced fresh steps to boost the sagging property sector, including granting second-home buyers that have paid off their first mortgage access to lower mortgage rates and lower down-payment requirements.

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This boosted Shanghai-listed property developers, with shares of Vanke and China Merchants Property rising over 2 percent on Wednesday.

"While Hong Kong generally reacts to what's happening on Wall Street, China is a closed market and follows domestic conditions," Kowalczyk noted, explaining the divergence between both markets.