(Yicai Global) Dec. 31 -- Chinese mainland stock markets climbed to multi-year highs on the last trading day of the year after China and the European Union concluded seven years of negotiations on an investment deal and as China’s economic recovery rolls on.

The Shanghai Composite Index closed 1.75 percent higher today at 3,473.07, the highest in three years, while the Shenzhen Component Index rose 1.89 percent to 14,470.68, a five-and-half-year high.The ChiNext, which tracks growth stocks in Shenzhen, soared 2.27 percent to 2,966.26.

Investors welcomed the news late yesterday that China and the EU had wrapped up talks on an investment agreement as scheduled, with Chinese President Xi Jinping saying the deal was “mutually beneficial” and would “provide greater market access.” China is the EU’s biggest trade partner, while the EU is China's second-biggest trade partner.

Market sentiment was also buoyed today by an official measure of economic activity extending its growth streak to a 10th straight month. The Composite Purchasing Managers’ Index stood at 55.1 this month, down 0.6 point from November, but above 55 for the fourth month in a row, according to data the National Bureau of Statistics published.

In the last trading week of this year all three mainland stock benchmarks advanced, with the Shanghai Composite Index gaining at 2.25 percent, the Shenzhen Component Index 3.24 percent, and the ChiNext 4.42 percent.

For the full year, Shanghai equities added 13.9 percent, Shenzhen 38.7 percent, and the ChiNext 65 percent. The Shenzhen market had total turnover of CNY122.3 trillion (USD18.7 trillion), compared with Shanghai’s CNY83.74 trillion (USD12.8 trillion).

Editor: Martyn Cartwright