BEIJING, Sept. 28 (Xinhua) -- Chinese shares closed at a new record on the last trading day before the weeklong National Day holiday as some of the 2.7 trillion yuan (355 billion U.S. dollars) "frozen" by the share sale of Shenhua Group, the nation's largest coal producer, was released on to the market.

The benchmark Shanghai Composite Index advanced 142.9 points to 5,552.3 points after hitting an all-time intra-day high of 5,560.42.

The Shenzhen Component Index on the smaller stock exchange market climbed 3.19 percent to close at 18,864.55 points.

Shenhua froze about 2.7 trillion yuan on opening for subscriptions on Tuesday, breaking the record set by China Construction Bank (CCB) earlier this month and prompting a market tumble the following trading day.

Chinese investors were keen to apply for new stocks that were very likely to soar on the first day of trading. The CCB gained 32.25 percent on Tuesday when listed on the Shanghai Stock Exchange.

"The string of IPOs will help stabilize the market by providing a greater stock supply as heavyweight stocks have a larger share in the market," said Guo Tianyong, banking expert with China University of Finance and Economics.

All sectors climbed at least one percent on Friday, with China Oilfield Service Limited soaring nearly 196 percent on its first day of trading to close at 39.9 yuan per share. Newly listed firmsare exempted from the ten percent daily maximum rise or fall in share value.

The property sector led the market, after the central government announced a new policy late on Thursday to improve management of housing loans and stabilize housing prices.

Most property developers saw their stock rise around three percent, with Vanke Group, China's largest real estate company, up 3.25 percent.

The financial sector was another major winner, with the banking sector climbing 2.58 percent as a whole and the nation's largest insurance firm China Life Insurance Company Ltd. soaring 6.88 percent.

From Thursday, managers of open-end funds, a type of popular mutual funds, began buying stocks of market heavyweights to drive up their net asset value, their pricing benchmark and a key indicator of their ranking, ahead of the third-quarter settlement day on Friday, which was believed to have added to the prices.

A report of the central bank's research institute has predicted the national economy would grow 11.6 percent this year, faster than the bank's June estimate of 10.8 percent.

Meanwhile, the trade surplus was expected to continue widening which shows rising production costs had little impact on the nation's exports.

Despite continuous rate hikes, deposits still seemed less attractive compared with stocks as Chinese investors looked to profit from the growth of gross margins partly driven up by expanding inflation.

Analysts differed on the market trend after the holiday. "The bullish trend is partly supported by the continuous price rises of resources, which are likely to last so long as there are no major negative polices," said Chen Wenwei, head of Hong Yuan Securities research center.

However, Teng Yin, investment adviser with China Ever bright Securities, held that share prices had been rising faster since the Shanghai Composite Index broke 4,000 points on July 20, and the market was facing increasing need for correction.