Chinese stocks closed higher on the last trading day of 2021, wrapping up the year on an upbeat note, as the market was underpinned by the latest data showing continued expansion in the manufacturing sector.

The Shanghai Composite Index went up 0.57 percent to reach 3,639.78 points on Friday, while the Shenzhen Component Index closed 0.41 percent higher at 14,857.35 points.

The gain came after the release of the official purchasing managers' index (PMI), a closely-watched indicator that measures factory and service sector activities.

The PMI for China's manufacturing sector came in at 50.3 in December, up from 50.1 in November, data from the National Bureau of Statistics (NBS) showed Friday.

The rise came after the country had revved up support to ensure adequate supply, stabilize market prices and ease the pressure of companies, said NBS senior statistician Zhao Qinghe.

The PMI for China's non-manufacturing sector also stayed above the boom-bust line of 50 to stand at 52.7 in December, up from 52.3 in November, showing sustained recovery in the service sector.

The combined turnover of stocks covered by the two indices stood at 1.06 trillion yuan (about 166.29 billion U.S. dollars), up from 1.02 trillion yuan on the previous trading day.

Meanwhile, the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, remained flat at 3,322.67 points.

The year 2021 saw China's stock market record a solid performance, with the annual gain of the ChiNext Index, outshining other indexes, at 12.02 percent.

Amid various challenges including COVID-19 resurgences and mounting debt pressures, the world's second-largest economy expanded 9.8 percent year on year in the first three quarters, a hard-won result reflecting the effectiveness of policies to support growth while defusing risks.