China shares close up 1.2pc, but end 2011 down 21.7pc

SHANGHAI: China shares closed higher for a third straight session on Friday, helped by bargain hunting in large caps, with trading remaining sluggish.

However, the main index ended 2011 with a loss of 21.7 percent, the worst annual performance since the global financial crisis in 2008, amid evidence that Chinese factory activity continues to shrink.

The Shanghai Composite Index closed up 1.2 percent at 2,199.4 points, with top insurer China Life Insurance rising 2.6 percent.