Hong Kong stocks continued their rally Tuesday after official data showed China's gross domestic product slowed less than expected and a report the country was on track to issue a record amount of exchange-traded funds in 2025.

The Hang Seng Index rose 386.80 points, or 1.60%, to 24,590.12, while the Hang Seng China Enterprises Index gained 144.36 points, or 1.65%, to 8,877.10.

China's gross domestic product grew 5.2% year over year in the second quarter, slower than the 5.4% rise in Q1 but faster than the 5.1% forecast by a Reuters poll of economists.

"Despite a strong H1, the outlook is set to sour in H2 as export frontloading fades and the impact of U.S. tariffs becomes more visible," Wei Yao, an economist at Societe Generale, was reported as saying.

Meanwhile, China is expected to launch a record number of ETFs this year, spurred by favorable regulations and growing investor demand for returns, the South China Morning Post reported.

Regulators in the world's second-largest economy have already approved half the number of ETFs launched during the all-time peak of 277 four years ago, the report said.

In corporate news, Grand Ming Group (HKG:1271) closed 6% higher after its lenders agreed to not demand immediate repayment for falling out of compliance with certain financial covenants.

Meanwhile, Ascentage Pharma (HKG:6855) fell nearly 4% after the company said it was looking to raise around HK$1.51 billion via the sale of shares.