China stocks rose slightly on Friday following last session's jump and are on course for their best week in months amid signs authorities are taking measures to aid economic recovery.

** China's blue-chip CSI 300 Index edged up 0.2%, while the Shanghai Composite Index added 0.3% by the midday recess.

** Hong Kong's Hang Seng Index rose 0.3% and the Hang Seng China Enterprises Index went up 0.1%.

** For the week, the CSI 300 Index gained 2.1%, set to log the biggest weekly gain in one month, while the Hang Seng Index is poised to see its biggest weekly rise since January with a 5.6% jump so far.

** The broad Asian stock market also rose, on course for its best week this year, as cooling U.S. inflation stoked speculation that the Federal Reserve could pause rate hikes after this month.

** China's central bank will use policy tools to weather the challenges facing by the world's second-largest economy, a central bank official said on Friday.

** "We continue to see constructive signs emerging gradually on supporting the economy and stabilization of geopolitical dynamics fronts," said Morgan Stanley in a note.

** The bank suggests investors monitor the State Council meeting in mid-July and Politburo meeting in late July, and potential additional easing measures, especially on the infrastructure and housing fronts.

** Investors are also awaiting the second quarter GDP data, due next Monday. A Reuters poll showed China's economy likely grew 7.3% during the period from a year earlier due to a low base, but momentum is rapidly faltering.

** Artificial intelligence (AI) stocks led the gains, after China published measures to manage its booming generative AI industry, and said regulators would seek to support development of the technology.

** Telecom stocks gained 4.8%, computer shares advanced 2.7%, and media firms climbed 2.8%.