SHANGHAI: China stocks had their best day in eight weeks on Friday, bouncing off 10-month lows on hopes of improving growth, but seven consecutive weeks of foreign net selling underscored lingering economic and geopolitical concerns toward the country. Hong Kong stocks rebounded sharply amid buoyant Asian markets.

China’s bluechip CSI300 Index ended the session up 1.8%, after earlier touching the lowest level since Nov. 4, 2022. The Shanghai Composite Index jumped 1.6%. Both indices had their best one-day performance since July 28.

In Hong Kong, the benchmark Hang Seng Index climbed 2.3%, led by tech shares.

“There has been significant policy support (in China) in the past weeks in the property and financial sectors,” said Value Partners investment director Kelly Chung, adding that the asset manager expects recovery to pick up steam in the fourth quarter.

Goldman Sachs said in a note that the mostly better-than-expected August data provided tentative signs that growth and inflation have bottomed out, but also flagged risks from the property sector. “We continue to expect that sequential growth will improve from Q2 to H2.”

However, foreigners have been net sellers in mainland China stocks via the Connect scheme for seven weeks in a row, reflecting lingering concerns over China’s economic health and Beijing’s tensions with the West.

Recent bank forex purchase and settlement data showed $75.9 billion worth of outflows under the capital and financial account during the first eight months of the year.