Chinese shares closed slightly higher on Friday, led by the shipbuilding and coal sectors.

The benchmark Shanghai Composite Index edged up 0.13 percent, or 3.51 points, to close at 2,797.77.

The Shenzhen Component Index climbed 0.09 percent, or 11.41 points, to 12,404.34.

Combined turnover shrank to 187.29 billion yuan (28.95 billion U.S. dollars) from 257.7 billion yuan during the previous trading day.

Losers outnumbered gainers by 489 to 393 in Shanghai and 764 to 494 in Shenzhen.

The shipbuilding sector rose 4.13 percent across the board. CSSC Jiangnan Heavy Industry Co., Ltd surged by the 10-percent daily limit to close at 28.37 yuan per share while Guangzhou Shipyard International Co., Ltd surged 6.23 percent to 30.88 yuan.

Shares of coal producers closed higher with Heilongjiang Heihua Co., Ltd up 3.05 percent to 11.48 yuan. China Shenhua Energy Co., Ltd climbed 2.31 percent to 31.41 yuan.

The banking sector shares also rose. Industrial Bank Co., Ltd. climbed 3.33 percent to 14.29 yuan while Shanghai Pudong Development Bank Co., Ltd. was up 2.11 percent to 10.14 yuan.

Bucking the trend, shares related to the non-ferrous metals sector fell with Jiangxi Ganfeng Lithium Co., Ltd down 4.31 percent to 35.08 yuan per share. Jiangsu Asia-Pacific Light Alloy Technology Co., Ltd lost 2.7 percent to 20.2 yuan.

Shares of glass producers also fell. CSG Holding Co., Ltd tumbled 3.19 percent to 17.32 yuan while Jiangsu Changhai Composite Materials Co., Ltd dropped 2.39 percent to 19.16 yuan.

To contain inflation, the central bank on Wednesday raised its benchmark one-year borrowing and lending rates by 25 basis points, the third time this year. It has also hiked the reserve requirement ratio six times this year.

The country will release its June inflation data on Saturday, according to the statistics authorities. It is widely expected to hit 6 percent.

The Consumer Price Index (CPI), a main gauge of inflation, rose 5.5 percent in May from the previous year, setting a 34-month high.