Investing.com -- Shanghai stocks hit the highest level in 11 years on Wednesday, while Hong Kong shares turned positive as investors purchased technology stocks ahead of a meeting between U.S. and Chinese leaders later this week.

"While Iran will no doubt come up, it is unclear to what extent Xi can, or wants, to help the US out on that front," Jonas Goltermann, the Chief Markets Economist at Capital Economics, wrote in a note.

"Our sense is that trade is more likely to be a core issue at the summit," he added.

The addition of Nvidia's Jensen Huang to a group of CEOs traveling with President Donald Trump to Beijing boosted Chinese artificial intelligence stocks. The Shanghai Composite opened lower but closed up 0.7%, marking its highest point since July 2015. The blue-chip Shanghai Shenzhen CSI 300 index rose 1%.

President Trump and Chinese leader Xi Jinping will hold their first face-to-face talks in more than six months this week as they attempt to stabilize relations affected by trade, the Iran war and other disagreements.

"Dialogue is helpful, and global cooperation on AI security would benefit everyone, but the competitive stakes are too high for either side to give much ground," Ed Yardeni wrote in his daily blog.

"Trump and Xi will talk all things AI security in Beijing this week, but we are not counting on an entirely friendly, or open discussion."

Investors showed reduced concern over the Iran war and inflation as they focused on the potential outcomes of the leadership meeting. The meeting could address energy supply concerns in the Gulf region.

Hong Kong shares reversed earlier losses to close in positive territory on Wednesday.