At the close, the Shanghai Composite Index was up 0.44% to 3,377.73.
The blue-chip CSI300 index rose 0.31%, with its materials sub-index surging 2.14% and the industrial sub-index up 1.36%.
COSCO Shipping Holdings Co was the biggest boost in the industrial sub-index, rising 10% from its daily limit, while Zijin Mining Group Co added 7.2%, one of the biggest drivers among material actions.
The smaller Shenzhen index ended up 0.6% and the ChiNext Composite startup index rose 0.83%.
“The earnings recovery and upward sentiment remain intact despite flaws and geopolitical uncertainty,” Morgan Stanley analysts said in a report. They expect A-shares to continue to outperform the offshore space in 2021 thanks to attractive valuations.
For the week, the CSI300 was up 1.78%, while the SSEC gained 2.04%.
China’s interbank bond market regulator said on Thursday that it would launch polls at three banks for their role in underwriting bonds issued by Yongcheng Coal & Electricity Holding Group, which defaulted on a 1 billion yuan bond the last week.
The move comes after some Chinese state-owned enterprises, including the parent company of BMW’s Chinese partner Huachen and Tsinghua Unigroup, defaulted on debts and triggered a market liquidation.
China left its benchmark rate for loans to businesses and households unchanged for a seventh consecutive month in its fixing in November on Friday, matching market expectations.
Across the region, MSCI’s Asia Ex-Japan stock index was 0.52% lower, while Japan’s Nikkei index closed 0.42% lower.