Mainland stocks closed up on Friday, capping their strongest monthly gain since September 2024, as abundant liquidity continues to drive the rally despite warnings from tech firms following recent price surges.

In Hong Kong, the benchmark Hang Seng Index ended trading up 78 points, or 0.32 percent, at
25,077. The index was down 1 percent this week but up 0.9% percent in August.
Tech majors rose 0.5 percent on Friday.

Across the border, the benchmark Shanghai Composite Index ended up 0.37 percent at 3,857 while the Shenzhen Component Index closed 0.99 percent higher at 12,696.

The combined turnover of these two indexes stood at 2.8 trillion yuan, down from 2.97 trillion yuan on Thursday.

Shares of lithium battery makers rose sharply, with liquor and financial stocks also posting strong gains, while chip stocks suffered major losses.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 2.23 percent to close at 2,890.

China's recent market rally has been underpinned by abundant liquidity in a low-yield environment, alongside government efforts to curb aggressive price competition to boost inflation.

The daily turnover in onshore Chinese shares hovered around three trillion yuan this week, with the total turnover for August set to hit a record high.

China's top economic planner will work with other departments to investigate and punish below-cost dumping, false propaganda and speed regulation of "disorderly competition" in some industries, its spokeswoman, Li Chao, said on Friday.

Chinese chip firm Cambricon Technologies on Thursday issued a risk alert to investors in a stock exchange filing, citing a sharp rise in its stock prices since late July. Its shares fell 6 percent on Friday after more than doubling this month.

Trading in the shares of China's Dosilicon was suspended on Friday after the semiconductor maker flagged multiple instances of abnormal stock price volatility since July 29.

The tech-heavy STAR50 index slid 1.7 percent after surging nearly 30 percent this month, while consumer staples gained 2 percent, leading onshore advances as investors rotated into defensives. (Reuters/Xinhua)