Hong Kong stocks held their momentum Wednesday as stronger-than-expected Chinese industrial output and retail sales data offset concerns over the country's weakest quarterly economic growth in more than three years.

The Hang Seng Index rose 1.4%, or 340.37 points, to close at 24,681.10, while the Hang Seng China Enterprises Index gained 1%, or 81.30 points, to finish at 8,184.38.

China's economy expanded 4.3% year over year in the second quarter, slowing from 5% in the previous quarter and marking its weakest pace of growth since the fourth quarter of 2022.

However, June industrial output rose 5.3% from a year earlier, and retail sales increased 1%, with both figures exceeding analysts' expectations, suggesting resilience in economic activity.

In corporate news, Insilico Medicine (HKG:3696) advanced over 10% after entering a strategic alliance with Bora Pharmaceuticals (TPE:6472) to collaborate on AI-driven drug discovery and development.