The Shanghai Composite Index <.SSEC> rose 0.3 percent on Friday, to 3,965.33 points, bringing this week's gain to 5.9 percent, the largest since early June.
But the CSI300 index <.CSI300> of the largest listed companies in Shanghai and Shenzhen dipped 0.1 percent, to 4,073.54. It posted a weekly gain of 4.3 percent.
Following three days of falls, the yuan
China's central bank stunned markets on Tuesday by devaluing the yuan by nearly 2 percent.
"Yuan devaluation suddenly became a concern for stock investors earlier this week, but now this issue is fading out of their radar," said Qi Yifeng, analyst at consultancy CEBM.
Waigaoqiao FTZ (>> Shanghai Wai Gao Qiao Free Trade Zone) surged 10 percent, the daily limit, after the Shanghai government-controlled company announced a major restructuring.
Investor interest in listed state-owned companies was also rekindled by a stock ownership incentive plan announced by Chinese liquor maker Wuliangye Yibin (>> Wuliangye Yibin Co., Ltd.).
Reform expectations pushed up prices of state firms including Luoyang Glass (>> Luoyang Glass Co.,Ltd.) and Guangdong Electric Power (>> Guangdong Electric Power Development Co.).
Many Tianjin-based companies, which slumped on Thursday following explosions in the northeastern port city, rebounded. Nearly a dozen companies issued statements saying their losses were limited.
The companies included Tianjin Port Holdings Co (>> Tianjin Port Company Limited), Tianjin Economic-technological Development Area Ltd (>> Tianjin Teda Co., Ltd.) and Binghai Energy (>> Tianjin Binhai Energy & Devel. Co., Ltd).
(Reporting by Samuel Shen and Pete Sweeney; Editing by Jacqueline Wong)