The blue-chip CSI300 index rose 0.3pc to 3,694.00, while the Shanghai Composite Index and added 0.3pc to 2,815.80.
Major indexes opened sharply lower, following an overnight selloff on the Wall Street, after the US Treasury yield curve temporarily inverted for the first time in 12 years.
Stocks then turned direction, led by gains for tech firms, with the tech-heavy start-up board index ChiNext Price Index ending up 1.2pc, reversing a 2pc loss earlier.
Major indexes tracking IT and telecoms firms gained 2.0pc and 1.6pc, respectively.
The US Treasury yield curve inversion bodes well for China's core assets, as China has relatively ample room for interest rates operations, strong domestic production and consumption, as well as independent markets and policies, even as Beijing further accelerates reform and opening up, Bohai Securities wrote in report.
There are chances that China's bond and stock markets could turn bullish with the help of domestic and foreign capital, the brokerage added.
Real estate firms also provided some support, after data showed modest gain in the country's new home prices.
The CSI300 real estate index closed up 0.2pc, reversing an up to 2.6pc intraday loss when the market opened on Thursday.
China's new home prices rose in July as the property sector held up as one of the few bright spots in the slowing economy, although easing momentum in some markets took immediate pressure off regulators to unleash major new curbs to deter speculation.
Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.63pc, while Japan's Nikkei index closed down 1.21pc.
At 0714 GMT, the yuan was quoted at 7.0246 per US dollar, 0.01pc firmer than the previous close of 7.025.
The largest percentage gainers in the main Shanghai Composite index were HPGC Renmintongtai Pharmaceutical Corp , up 10.08pc, followed by Shanghai Tongda Venture Capital Co Ltd, gaining 10.03pc and Veken Technology Co Ltd, up by 10.02pc.
The largest percentage losses in the Shanghai index were Pengqi Technology Development Co Ltd down 5.38pc, followed by Aurora Optoelectronics Co Ltd losing 5.13pc and Pengqi Technology Development Co Ltd down by 4.96pc.
As of 0715 GMT, China's A-shares were trading at a premium of 32.34pc over the Hong Kong-listed H-shares.