Shanghai's stock benchmark reversed earlier losses and ended higher for the eighth consecutive session on Friday, booking the longest winning streak since April.

At the close, the benchmark Shanghai Composite Index was up 0.1 percent to 3,963 points.

The Shenzhen Component Index closed 0.5 percent higher at 13,603.

Private fund manager Rabbit Fund expects mainland stocks to zig-zag higher as the economy slowly recovers.

Analysts also expect the market to benefit from a strengthening yuan, which on Thursday registered its strongest official close in 2.5 years.

The currency appreciation "is expected to whet foreign appetite for yuan assets, push up valuations and increase interbank liquidity," Huatai Securities said.

Steelmakers rose after China on Friday said it will continue to regulate crude steel output and prohibit the addition of illegal new capacity from 2026 to 2030.

But tech stocks, including chip-makers and consumer electronics firms, dropped on profit-taking after strong gains recently.

The Hong Kong stock market ⁠is closed on Friday for a public holiday. (Reuters/ Xinhua)