Chinese equities edged higher in the morning session on Friday, with the benchmark Shanghai Composite Index up 0.49 percent to end at 3,133.96 points.

The Shenzhen Component Index rose 0.68 percent to end at 12,511.41 points.

Telecom stocks led the gains, with 38 companies rising 2.79 percent on average, after the country announced its 3G promotion plan Thursday.

China plans to have 150 million 3G mobile telecommunication users by 2011 while investment in 3G development will hit 400 billion yuan (58.6 billion U.S. dollars).