Chinese stocks surged Friday, led by bank shares and developers, with the benchmark Shanghai Composite Index up 31.11 points, or 1.06 percent, to 2,977.81.

The Shenzhen Component Index climbed 170.62 points, or 1.34 percent, to 12,942.07.

Combined turnover rose to 308.14 billion yuan (46.69 billion U.S. dollars) from 241.33 billion yuan the previous trading day.

Gainers outnumbered losers by 613 to 259 in Shanghai and 738 to 440 in Shenzhen.

Bank shares led the rebound on Friday with resilient earnings reported by the Bank of China, the country's third-largest lender.

The bank said Thursday its 2010 net profits rose 29 percent year on year to 104.4 billion yuan due to increased loan profitability and lower credit provisions.

Shares of the bank gained 1.82 percent to 3.35 yuan, while its rival, Industrial and Commercial Bank of China, the nation's biggest lender by market value, climbed 1.13 percent to 4.46 yuan per share.

Shares in developers and cement producers jumped after Chinese Vice Premier Li Keqiang urged local authorities to press ahead with the construction of 10 million affordable homes this year.

China Vanke Co., the country's largest property developer by market value, gained 2.71 percent to 8.72 yuan. Huaxin Cement Co. rose 3.99 percent to 50.51 yuan.

Hainan-related shares also surged after the central government said the tropical island province in southern China would implement a tax rebate program for tourists on a trial basis starting April 20 to boost tourism there.

Hainan Airlines Co. rose 5.95 percent to 8.55 yuan while Hainan Expressway Co. increased 3.85 percent to 6.2 yuan.

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