China stocks closed higher on Wednesday as oil prices declined following a joint declaration by Iran and Oman to ensure safe transit through the Strait of Hormuz.

The Shanghai Composite Index, the main gauge of Chinese stocks, rose 0.6% during the closing bell to 3,912.52. The Shenzhen Component Index jumped 0.7% to 13,841.33.

The two Gulf nations set up a "joint temporary navigational corridor through the Strait of Hormuz and an agreement to implement a joint project to clear the Strait of mines," according to the statement published Wednesday. Brent crude prices fell around 2% to around $86 to $87.

Chinese lawmakers also began to review cross-border anti-corruption legislation, state-owned newspaper People's Daily said Tuesday. The legislation aims to "prevent and punish cross-border corruption and deepen international cooperation in the fight against corruption."

In corporate news, Wus Printed Circuit (Kunshan)'s (SHE:002463) shares finished 5% higher after posting a 74% rise in its first-half profit.