China Stocks Soar on Strong Week's Close Amid Sovereign Fund Buying

China's stock market ended the week on a high, driven by significant purchases from Huijin, a sovereign fund. Additional governmental support for the property sector also boosted investor sentiment. Key indexes like the Shanghai Composite and Hang Seng saw notable rises due to these factors.

China's stock market ended the week on a bullish note, lifted by hefty buying activity from the state-backed Central Huijin Investment. This move was revealed in mid-year reports from fund managers, and government steps to support the beleaguered property sector added to investor confidence.

The Shanghai Composite index closed at a 0.68% gain, while the blue-chip CSI300 index surged by 1.33%, despite both registering their fourth consecutive month of declines. Huijin Investment notably tripled its stake in the E Fund CSI300 Index ETF and increased its holdings in the ChinaAMC China50 ETF by 70%.

Property shares soared on reports that the government might allow homeowners to refinance up to $5.4 trillion in mortgages. At the close of trade, Hong Kong's Hang Seng index rose by 1.14%, hitting a one-month high, fueled by gains across multiple sectors, including real estate and IT.

(With inputs from agencies.)