Mainland stocks still have room to rise, analysts said, following last week's solid gains as global investors regained their confidence in the second week after the UK voted to leave the EU.
The Shanghai Composite Index fell 0.95 percent on Friday to 2,988.09 points, cutting into the week's gains to finish up 1.9 percent.
The Shenzhen Component Index dipped 0.08 percent on Friday to end the week 1.47 percent higher.
The CSI 300 Index of the biggest companies traded in Shanghai and Shenzhen dipped 0.55 percent to close at 3,192.28 points on Friday, up 1.21 percent for the week.
The ChiNext Index, which tracks the country's NASDAQ-style board for growth enterprises, added 0.23 percent on Friday to 2,239 points, extending the week's increase to 1.26 percent.
According to the latest data from the Shanghai and Shenzhen stock exchanges, the total circulating market value of the two bourses was 37.01 trillion yuan ($5.53 trillion) as of Friday, slightly above the previous week's 36.33 trillion yuan.
The scale of margin trading amounted to 870.2 billion yuan ($130 billion) as of Thursday, up 19.1 billion yuan compared with the end of the previous week.
Mainland stocks started out last week at a sprint, with the benchmark index jumping 1.91 percent and the Shenzhen index climbing 1.45 percent.
The major indexes edged up Tuesday and Wednesday, only to give most of those gains back.
China Vanke Co resumed trading on July 4 after its shares were suspended for more than six months due to planned restructuring. Shares of the well-known real estate developer slumped by the daily trading limit of 10 percent on Monday and Tuesday before steadying over the next three days.
The mainland stock markets, as well as those in the US and the UK, heated up last week as investors regained the confidence they lost when the UK voted to leave the EU on June 23, analysts said.
Analysts predicted domestic shares will continue to edge up in July due to factors such as slowing growth of real estate prices and the government's focus on State-owned enterprises reforms.
Stock commentator Wen Guoqing noted that the benchmark index could reach 3,200 points over the next two months, with sectors such as nonferrous metals and Chinese herbs expected to lead the next leg of the rally.
