China's Stock Surge: A Mixed Week Amid Economic Challenges

China's stock market showed resilience on Friday, poised for the largest weekly gain in months despite weak economic indicators. While China's blue-chip indices rose, Hong Kong shares fell. Economic challenges persist, with sluggish factory output and retail figures. Stimulus hopes are stirred amid these mixed economic signals.

Devdiscourse News Desk | Shanghai | Updated: 15-08-2025 10:00 IST | Created: 15-08-2025 10:00 IST

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China's stock market exhibited resilience as stocks rose on Friday, heading for the most significant weekly gain in seven months. This surge happened despite a slew of discouraging economic data, indicative of a robust risk appetite among investors. However, Hong Kong shares experienced a decline.

The blue-chip CSI300 Index and the Shanghai Composite Index each gained 0.5% by lunch, while Hong Kong's benchmark Hang Seng fell 1.2%. Factory output's growth has slumped, retail sales decelerated, reflecting the economic challenges policymakers face as they aim to achieve a 5% GDP growth target.

With weak economic data stimulating hopes for further policy stimulus, risk asset appetite increased, marking the highest rise for the Shanghai Composite since December 2021. Despite declines in tech majors in Hong Kong, real estate shares rose amid reports of new home price declines narrowing in major cities.

(With inputs from agencies.)