BEIJING, Aug. 7 (Xinhua) -- Chinese stocks closed higher on Friday, with the benchmark Shanghai Composite Index up 1.02 percent to 3,940.04 points.

The Shenzhen Component Index closed 1.42 percent higher at 14,311.01 points.

The combined turnover of stocks covered by the two indices stood at around 2.68 trillion yuan (about 394.67 billion U.S. dollars), up from 2.53 trillion yuan on the previous trading day.

The pharmaceuticals and healthcare, co-packaged optics, and semiconductor chip sectors led the gains, while digital currency, cross-border payments, software development, and gaming recorded the sharpest declines.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 1.35 percent to close at 3,563.12 points.

The STAR Composite Index, which reflects the performance of stocks on China's sci-tech innovation board, closed 3.35 percent higher at 2,019.44 points.