Mainland stocks rose on Friday and logged their biggest weekly gain in nine months, as resilient risk appetite helped investors look past a raft of disappointing economic data.

Hong Kong shares declined, with the benchmark Hang Seng Index ending the last trading day of the week down 249 points, or 0.98 percent, at 25,270.

Tech majors traded in Hong Kong shed 0.6 percent, tracking declines in New York.

Onshore investors bought a net of HK$36 billion of Hong Kong shares via the Stock Connect scheme on Friday, the highest on record since data is available.

On the mainland, the benchmark Shanghai Composite Index ended up 0.83 percent at 3,696, while the Shenzhen Component Index closed 1.6 percent higher at 11,634.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 2.61 percent to close at 2,534.

China's CSI300 Index closed up 0.7 percent, which puts the blue-chip gauge up 2.4 percent for the week.

China's factory output growth dropped to an eight-month low in July, while retail sales also slowed, reinforcing the challenge confronting policymakers as they strive to shore up an economy in the face of soft demand at home and external risks.

Appetite for risk assets strengthened this week, with the Shanghai Composite Index hitting its highest since December 2021.

Meanwhile, the margin financing balance for stocks surpassed 2 trillion yuan, the highest since 2015.

New home prices on the mainland declined again in July, falling 0.3 percent month on month.

However, the drop narrowed slightly in major cities as more local governments rolled out incentives for homebuying.

China is preparing to mobilise central government-owned companies in Beijing to buy unsold homes from troubled property developers, media reported on Thursday.

Real estate shares rose 1.9 percent.