China's stocks rose for the fifth consecutive day on Friday, wrapping up the week with the best weekly gain in more than a year.
The benchmark Shanghai Composite Index rose 1.55 percent, or 37.80 points, to close at 2,473.41. The index rallied 6.74 percent in the week, the highest since Oct. 18.
The Shenzhen Component Index shot up 2.31 percent, or 238.70 points, to close at 10,561.99.
Market sentiment was boosted by speculation of loosening property purchase restrictions and the euro zone debt package. Premier Wen Jiabao said on Tuesday that the government will properly fine-tune economic policies.
Combined turnover expanded sharply to 192.1 billion yuan (30.25 billion U.S. dollars) from 141.89 billion yuan on the previous trading day. Gainers outnumbered losers by 895 to 31 in Shanghai and by 1,305 to 43 in Shenzhen.
Stocks in the sector of environmental protection were among the market leaders as investors are expecting development plans in the field to be unveiled in a national environmental protection conference early next month.
The conference will be a stimulus to the industry and the fourth quarter will be a peak season for policies' issuance, said Cui Yuqin, analyst with Everbright Securities Co.
Nanjing CEC Environmental Protection Co. surged by the daily limit of 10 percent to 23.66 yuan. The company's share price has risen for four straight days.
Capital Environmental Protection advanced 7.39 percent to 6.54 yuan.
Property stocks were robust after Jiang Weixin, Minister of Housing and Urban-Rural Development, said on Thursday that the government's measure of home purchase limits was the last resort to curb excessive gains in property prices, and will be phased out after a national database on individual property ownership is established.
China Vanke Co., the country's largest listed property developer, rose 3.13 percent to 7.91 yuan. Poly Real Estate Group Co., the second largest, gained 4.41 percent to 10.17 yuan.
Companies in the non-ferrous metals and coal industries also performed well on rising prices of commodities due to the improving global economic outlook.
Yanzhou Coal Mining Company Limited surged 9.07 percent to 28.73 yuan, and Anhui Hengyuan Coal-Electricity Group Co. rose 8.12 percent to 18.11 yuan. Sichuan Western Resources Holdings Co. added 4.89 percent to 17.59 yuan.