Despite trade disputes and geopolitical tensions, China's stock markets proved resilient in the first half, with the Shanghai Composite Index jumping 3.6 percent and the Shenzhen Component Index rising almost 1 percent.
Hong Kong's Hang Seng Index was a star performer, surging 22 percent in the first six months and leading the world in initial public offerings that totaled HK$102 billion (US$13 billion) in money raised.
The markets in the first half were bolstered by technology shares following new developments in artificial intelligence, biomedicine and clean energy.
"We predict the growth momentum will follow into the second half, despite lot of uncertainties," said Meng Lei, China equity strategist at UBS Securities, the Chinese brokerage arm of the Swiss banking giant.
He predicted the CSI 300 Index, which tracks the performance of the top 300 stocks traded on Shanghai and Shenzhen exchanges, will increase 6 percent in the next six months.
"But a lot will depend on how trade talks and regional wars fare, and whether China will further relax policies to stimulate sectors like the property market and carry on with cuts in interest rates or bank reserve requirements," Meng told a media briefing earlier this week.
The Shanghai Composite Index jumped 3.6 percent in the year to date, with a notable V-shaped performance presented in April.
US President's bombshell announcement in April of tariffs on all trading partners sent global stock markets into reverse, but China's exchanges returned quickly to calm, helped by injections of capital from the central bank and asset management companies.
"It is interesting to note that the exchange-traded fund of the CSI sees a steep rise in funds inflow whenever the Shanghai Component Index is about to fall below the 3,000 mark," Meng said. "So we can consider the 3,000 level a bottom line, which gives assurance to investors in the second half, no matter what happens in trade talks and geopolitical tensions."
On Friday, China's stock markets were mixed, The Shanghai Composite Index rose 0.32 percent, for a weekly gain of 1.4 percent. The Shenzhen Component Index fell 0.25 percent but gained 1.25 percent, for the week. Biomedicine shares of Hotgen Biotech, Huiyu Pharmaceutical and Sinocelltech led gainers.
US markets were closed on Friday for a holiday. For the four days of trading this week, the S&P 500 closed up 1.7 percent at a record high. The Dow posted a 2.3 percent gain, and the Nasdaq added 2.6 percent.