The Hong Kong stocks closed higher on Friday, paring the week’s losses as China’s decision to stand pat on a benchmark interest rate offered optimism that a recovery in the world’s second-largest economy would hold up.

The Hang Seng Index rose 1.3%, the Hang Seng Technology Index rose 0.9%.

Mixue up 4%; Nio up 3%; Xiaomi, SMIC up 2%; Alibaba, Tencent up 1.5%; BYD, XPeng up 1%; Pop Mart down 4%; Bloks fell 10%.

China should further refine regulations for “blind cards” and “mystery boxes” as some of the current business models induce minors to become addicted to purchasing these products, according to a feature story carried on the 19th page of the People’s Daily, the flagship newspaper of the Chinese Communist Party, citing legal experts.

China left the one-year loan prime rate unchanged at 3 per cent this month, and the five-year rate at 3.5 per cent, according to the central bank. Both rates were cut by 10 basis points in May.

The People’s Bank of China has delivered fewer rate reductions than expected this year, stirring expectations that the economy has been riding out headwinds such as tariffs from the US and the property market downturn. Retail sales unexpectedly rose more than estimated last month, and exports avoided a collapse despite the elevated levies from the US.

“Some of the economic data is solid,” said Xu Zhi, an analyst at Central China Securities. “Growth in exports indicates the resilience of the market and the ability of the companies to navigate through complicated situations. The economic recovery is still getting under way, but at a slow pace. Buying will probably be rotating between value and growth stocks.”