Chinese shares closed up 1.85 percent on Friday led by banks and automakers, a day after third-quarter data showed strong growth in the economy, dealers said. The Shanghai Composite Index, which covers both A and B shares, was up 56.44 points to 3,107.85 on turnover of 157.3 billion yuan (23 billion dollars). The key index rose 4.4 percent over the week.
Friday's gains came after the government reported an acceleration in gross domestic product growth to 8.9 percent in the third quarter from 7.9 percent in the second quarter and 6.1 percent in the first. "Yesterday's data did not beat expectations, but it still confirms the economy is moving towards the bright side," Wang Junqing, an analyst at Guosen Securities, told Dow Jones Newswires.
Meanwhile, gains on Wall Street overnight also supported sentiment, traders said. Banks were among the biggest gainers Friday with China Merchants Bank up 4.5 percent at 17.71 yuan and Bank of Communications ending 3.6 percent higher at 9.13 yuan. Automakers rallied with Chongqing Changan Automobile rising 3.1 percent to 11.83 yuan. SAIC Motor closed up 1.8 percent at 21.22 yuan. Resources firms also outperformed, with the coal sector particularly strong. China Shenhua Energy increased 3.2 percent to 36.88 yuan and Datong Coal Industry jumped 5.9 percent to 45.64 yuan.
The Shanghai A-share index added 59.35 points, or 1.85 percent, to 3,261.63 on turnover of 156.9 billion yuan, while the Shenzhen A-share index rose 16.50 points, or 1.47 percent, to 1,140.25 on turnover of 96.9 billion yuan. The Shanghai B-share index was up 2.02 points, or 0.96 percent, to 212.42, while the Shenzhen B-share index advanced 4.69 points, or 0.86 percent, to 546.96.