China's equity markets reversed their losses to close at 2009.57 in the morning session on Thursday, with expectations that government will formulate new policies to prop up the economy.
The benchmark Shanghai Composite Index climbed 0.27 percent to finish the morning trade at 2,009.57. It briefly dipped below the 2,000 level for the first time since February 2009, before closing at 2,004.17 on Wednesday.
The Shenzhen Component Index advanced 0.45 percent to close at 8,230.35 points.
The sluggish performance of A shares has led some foreign fund managers to tiptoe the market, betting on China's long-term growth potential, experts said, suggesting sectors including non-bank financial institutions, consumption, non-ferrous metals and public service as investment priorities.