The government in China has set up a target of 7.5 per cent growth this year as it begins the crucial leadership transition summit.

Experts say that the moderate growth target reflects that the Chinese government is looking for a broader economic development driven by domestic spending instead of focusing on double digit growth based on exports to the global markets. The target will be the central point in the agenda at the National People's Congress that began on Tuesday.

Premier Wen Jiabao suggested that the government should look at expanding domestic production as a long term development strategy. Recently weak manufacturing data recorded in China had raised concerns over the fragile recovery in the world's second largest economy.

The CSI 300 Index, representing the nation's biggest companies in the Shanghai and Shenzhen stock exchanges, rose 3 per cent while the Shanghai Composite Index (SHCOMP) gained 2.3 per cent, recovering from a two day decline. Taiwan's Taiex index recorded a gain of 0.8 per cent as mainland shares added gains during the day.

According to the latest data, the Hang Seng Index increased about 0.1 per cent to 22,560.5, while the China Enterprises Index of the top Chinese listings in Hong Kong recorded an increase of 0.6 per cent