Hong Kong and China stocks advanced on Friday, posting weekly gains, as rising Wall Street stock index futures and an influx of foreign capital into the mainland markets buoyed investing sentiment. The Hang Seng Index swung between gains and losses before finishing ahead by 0.7 per cent to 24,643.89. It rose 1.4 per cent over the week, in a reversal from last week’s 1.9 per cent loss. The Shanghai Composite Index advanced 1 per cent to 2,967.63, gaining 1.6 per cent for the week. “The mood in the market has been steady lately after factoring in several negative factors” such as a second wave of coronavirus in Beijing and rising US-China tensions, said Stanley Chan, director of research at Emperor Securities. “Hong Kong stocks have been lagging behind global markets and could catch up in the third quarter.” Investors have remained cautious overall in recent weeks as they awaited the details of the controversial national security law to be introduced to Hong Kong by Beijing, he said. If the political situation keeps steady as policymakers unveil the content of the legislation, the benchmark would have more upside, he added. In some of the most eye-catching movements among blue chips, Chinese social media and gaming giant Tencent Holdings edged up 0.5 per cent to HK$460.4, inching closer to its all-time high of HK$471.2 achieved in January 2018. “Even if the stock rises to HK$500, it wouldn’t be too high,” said Chan, adding that its surging valuation is supported by steady earnings growth from its online games business. Hong Kong Exchanges and Clearing, the bourse operator, added 1.5 per cent to HK$300.4, reaching an all-time high as investors were upbeat about its income growth amid a raft of US-listed Chinese companies coming to the city for secondary listings. On the Wall Street, the Dow Jones futures added 0.6 per cent, on improved sentiment over the global economic recovery despite a resurgence of coronavirus cases in the US. London-based global index provider FTSE Russell is set to hike the weighting of China’s A shares in its indices to 25 per cent from 17.5 per cent after market close on Friday. It is estimated to bring about 21 billion yuan (US$3 billion) of new capital into the onshore market from passive funds that track the indices. Alibaba Health Information Technology , operator of an online health services platform, jumped 10 per cent to HK$22.05, an all-time high. The stock will become a component of the FTSE China A50 index. Chinese drug maker Hansoh Pharmaceutical Group, another stock to be included in the benchmark, rose 2.5 per cent to HK$39.4, a historical high since it was listed in June 2019. In mainland markets, a strong rally nicked-named “drinking alcohol and taking drugs” by investors is continuing, referring to the strength in Chinese distillers and pharmaceutical stocks amid volatility in the broader market. Among the hottest stocks in the sectors, Kweichow Moutai, maker of the fiery baijiu , gained 1.9 per cent to a fresh historic high of 1,439.84 yuan. Jiangsu Hengrui Medicine, a drug maker based in eastern China, also climbed 4.1 per cent. Small-cap stocks on the ChiNext board of start-ups in Shenzhen climbed, extending a bull run on recent reforms including the introduction of a registration-based initial public offering system. The ChiNext index advanced 2.4 per cent to 2,319.45, on track to close at its highest level since January 2016. Home appliance maker Shenzhen Crastal Technology surged by 44 per cent to 8.51 yuan from its listing price of 5.91 yuan, after its shares started trading in Shenzhen for the first time. Meanwhile, biopharmaceutical firm Shanghai Fudan-Zhangjiang Bio-Pharmaceutical jumped 313 per cent to 37 yuan from its listing price of 8.95 yuan after going public on the Star technology board in Shanghai. Hua Medicine, an innovation drug maker, soared by 27 per cent to HK$6.98, after announcing it has completed a phase-three clinical trial for a drug to treat diabetes and received positive results.