China's stocks rallied Friday, led by banks on earnings prospect and airlines and paper makers on stronger yuan.

The benchmark Shanghai Composite Index rose for the seventh consecutive day by 3.18 percent, or 91.52 points, to close at 2,971.16, the highest since April 26.

The gain was the most in a single day since May 24. The index ended the week with about an 8.49-percent gain.

The Shenzhen Component Index climbed 2.06 percent, or 257.79 points, to end at 12,765.50.

Combined turnover expanded to 447.95 billion yuan (67.44 billion U.S. dollars) from 439.07 billion yuan on the previous trading day.