Spending over holiday helps boost economy

Confidence in China's economic recovery and a positive outlook on companies' profitability in the fourth quarter strengthened the bullish performance of the A-share market on Friday, which resumed trading after the eight-day holiday.

The benchmark Shanghai Composite Index gained 1.68 percent on Friday to close at 3272.08 points, while the Shenzhen Component Index climbed 2.96 percent to close at 13289.26 points. The technology-focused ChiNext index in Shenzhen increased 3.81 percent to close at 2672.93 points.

The Shanghai and Shenzhen bourses reported a combined trading volume of 711.3 billion yuan ($106 billion) on Friday, up 31.7 percent from the previous trading day. The net inflow of northbound capital－the trading volume from overseas investors using the stock connect program between Shanghai, Shenzhen and Hong Kong－topped over 11.2 billion yuan. Northbound capital reported a net outflow for one week before the National Day holiday.