China Shares Edge Up as Banks Rise; Focus Moves to Fed

China stocks rose slightly on Wednesday, aided by strength in property and financial stocks, although the general mood remained cautious.

The market was also underpinned by surge in major steelmakers as investors bet on the next target of government-led restructuring after the disclosure of merger plans between Baoshan Iron and Steel and Wuhan Iron and Steel.

In Asia, sentiment generally got a lift from the Bank of Japan's decision to overhaul its policy framework as it ramped up efforts to revive growth and stoke inflation.

Traders were also looking ahead to the U.S. Federal Reserve policy review later in the day, with focus on any clues on the timing of the next U.S. rate hike.

The blue-chip CSI300 index rose 0.3 percent, to 3,266.64, while the Shanghai Composite Index gained 0.1 percent to 3,025.87 points.

Angang Steel jumped 4.8 percent, while shares of Bengang Steel Plates surged 6.4 percent. Maanshan Iron & Steel gained 2.8 percent.

China's venture capital stocks, including Kunwu Jiuding Investment Holdings and Luxin Venture Capital also surged, after China published rules to promote healthy development of the industry.

(Reporting by Samuel Shen and John Ruwitch; Editing by Shri Navaratnam)