Chinese equities advanced on Friday, led by non-ferrous metal stocks and property developers.
HSBC Global Asset Management bought China's bank stocks even amid concerns that record credit growth will increase bad loans and accelerate inflation.
Most mainland stocks rose as media and technology companies gained on speculation the government may start to allow bundling of telephone, Internet and television services, overshadowing declines by banks.
The combination of record mutual fund inflows and the fastest economic growth are failing to lift shares in the largest developing nations with valuations at the highest level versus developed countries since at least 1995.
Hong Kong stocks shed 53.82 points or 0.25 percent to close at 21,330.67 on Thursday.
The ChiNext stock market was up Thursday as only six of the 58 stocks at China's start-up board for small and medium-sized enterprises declined.
Chinese equities closed mixed on Thursday, with the benchmark Shanghai Composite Index down 0.14 percent or 4.39 points to close at 3,046.09 points.
Investors opened the most accounts to trade Chinese stocks last week in three months as households shifted funds into equities to protect against faster inflation.
Mainland stocks rose, driving the benchmark index to its biggest gain in six weeks, as a US pledge to keep interest rates low boosted commodity prices and investors speculated recent equity declines were excessive.
China's government will issue 26 billion yuan ($3.8 billion) of book-entry treasury bonds from Thursday, the Ministry of Finance (MOF) said in a statement posted on its website Wednesday.
Equities in China's paper manufacturing industry are poised to gain in the near term amid market expectations of a stronger yuan triggered by the steady recovery of exports, analysts said.
Hong Kong stocks edged up 361.56 points or 1.72 percent to close at 21,384.49 on Wednesday.