SHANGHAI: Chinese shares ended higher on Thursday, underpinned by gains in tech stocks, as strong domestic factory data for July added to signs of an economic recovery from the coronavirus outbreak.

At the close, the Shanghai Composite index was up 1.75% at 3,367.97. The blue-chip CSI300 index was up 1.62%.

The smaller Shenzhen index ended up 2.6% and the start-up board ChiNext Composite index was higher by 2.629%.

Tech firms were boosted by an announcement from the country's Satellite Navigation Office that China will build a complete industrial chain of chips, modules, boards, terminals and operation services for China's Beidou navigation system.

Shanghai's tech-focused STAR50 index closed up 7.26%, its biggest daily gain since its debut on July 23, while an index tracking military and defence firms jumped 7.60%.

Overall, sentiment was supported by a private business survey released on Monday, which showed that China's factory activity expanded at the fastest pace in nearly a decade in July as domestic demand continued to improve after the pandemic, though export orders and employment remained weak.

So far this year, the Shanghai stock index is up 10.4% and the CSI300 has risen 16.5%, while China's H-share index listed in Hong Kong is down 10.4%. Shanghai stocks have risen 1.75% this month.