Shanghai shares end week down 7% as stock markets recover
With these gains adding to Thursday`s recovery, some calm has been restored after Wall Street closed higher.
Stocks elsewhere in Asia also continued their rebound, helped by a strong finish for US shares.
In Hong Kong, the Hang Seng index was 0.6% higher in late trading.
Japan`s benchmark Nikkei 225 also posted strong gains, closing up 3% at 19,136 points.
Morning trade in Tokyo extended Thursday`s recovery on the region`s largest stock market after its sharp losses earlier in the week.
Investors were also looking at fresh data showing that Japanese inflation fell back to zero in July, raising speculation that the central bank would launch a fresh round of stimulus.
In Sydney, the ASX 200 finished 0.6% higher at 5,263 points.
Marking the end of a week of corporate results, the supermarket Woolworths reported a 12.5% drop in full-year profit - its first fall in almost two decades.
However, Woolworths` shares closed 1.5% higher after the retailer announced a new chief executive in a bid to revive its fortunes.
South Korea`s Kospi index finished 1.6% higher at 1,937 points.
The recovery across Asia took its cue partly from China`s recovery, but also the strong sentiment from the US.
Shares on Wall Street rose overnight and oil prices jumped sharply after revised figures showed the US economy expanded far more than originally thought in the three months to June.