July 13, 2012 (Chinavestor) Chinese stocks advanced in Hong Kong for Friday yet the Hang Seng Index (INDEXHANGSENG:.HSI) fell 708.01 points or 3.58% for the week as global economic outlook darkened. Chinese airliners did best on Friday after the State Council announced plans to support the industry via relaxed taxation and investment. China Southern Airlines (HKG:1055) surged 8.4% while China Eastern Airlines (HKG:0670) jumped 6.9%. Air China (HKG:0753) rose 4.6% making these three airliners the best components of the 42 member Hang Seng Index (INDEXHANGSENG:.HSI).
Stocks were mixed in Shanghai where investors digested latest GDP growth numbers. China's economy grew at an annual rate of 7.6% in the second quarter, a three year low. But that opens up opportunity for the government to step up efforts to stimulate the economy. Investors in China put a lot of trust to such government measures and were reluctant to participate in a broad sell-off despite weak data. The Shanghai Composite Index (SHA:000001) was virtually unchanged on Friday but lost 1.7% for the week.