HONG KONG - China shares posted modest gains on Friday in a tepid finish to their strongest week in four, reversing losses after solid data showing stronger-than-expected factory output in the world's second-largest economy.

The CSI300 of the leading Shanghai and Shenzhen A-share listings ended up 0.4 percent at 2,286 points. The Shanghai Composite Index also inched up 0.4 percent.

On the week, they gained 1.7 and 1.1 percent - their respective best since the week that ended July 12.

China's industrial output rose 9.7 percent in July, above expectations, while fixed-asset investment, an important driver of economic activity, rose 20.1 percent in the first seven months from the same period last year, the National Bureau of Statistics said on Friday.

This came after official data in the morning showed China's consumer inflation steadied in July although factory-gate deflation persisted for a 17th month, pointing to monetary policy on hold as Beijing tries to arrest a slowdown that has run for more than two years.