China shares up for 4th straight day as banking stocks find buyers

China stocks rose for their fourth straight day on Friday, as a tumble in small-caps triggered by supply fears was offset by a surge in banks amid speculation that government-backed investors helped stabilise the market ahead of a key meeting of China's parliament.

At the end of a volatile session, the blue-chip CSI 300 index rose 1.2% to 3,093.89, while the Shanghai Composite Index gained 0.5% to 2,874.15 points.

For the week, the CSI 300 jumped 4.9%, while SSEC gained 3.9%, both posting their biggest weekly gains in more than two months.

Shenzhen's start-up board ChiNext has collapsed 5.3% on worries that Shanghai will soon launch a rival board for small-caps, potentially to boost supply.

But any impact on benchmark indexes was offset by a 4.3% jump in the banking sector.