SHANGHAI, April 1 (Reuters) - China stocks ended higher on Friday, with property developers leading the gains on expectations of more economic stimulus after data showed factory activity slumped at the fastest pace in two years in March.

The blue-chip CSI300 Index rose 1.3% to 4,276.16, while the Shanghai Composite Index gained 0.9% to 3,282.72.

For the week, the CSI300 Index added 2.4%, the biggest weekly gain so far this year, while the Shanghai Composite Index was up 2.2%.

** The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI), which focuses more on small firms in coastal regions, fell to 48.1 in March, broadly in line with the official PMI released on Thursday, as the domestic COVID-19 resurgence and the economic fallout from the Ukraine war weighed.

** China's commercial hub of Shanghai grounded to a halt on Friday after the government locked down most of the city's 26 million residents to stop the spread of COVID, even as official numbers showed cases falling for the second day in a row.

** To some extent, negative headlines were priced in during the first quarter, said Yang Delong, chief economist at Shenzhen-based First Seafront Fund Management Co, adding he expected a potential rebound in the second quarter.

** China's CSI300 Index tumbled 14.5% in the first three months of the year, marking its worst quarter since 2015.

** Government officials have vowed to roll out policies to stabilise the economy, while analysts say the possibility of the central bank cutting reserve requirement ratios in April has risen as economic headwinds intensify.

** Real estate developers surged 4.6%, financials firms gained 1.9%, and consumer staples added 1.6%.

** Tourism and transportation stocks jumped 4.5% and 5.3%, respectively, ahead of the Tomb Sweeping Festival holidays.

** Shipping and port firms surged, with Shanghai International Port Group jumping 10% after it forecast a 75.6% rise in first-quarter net profit. (Reporting by Shanghai Newsroom; Editing by Subhranshu Sahu)