China on Thursday urged the Palestinian government's ruling Hamas party to release an abducted Israeli soldier, saying it was "deeply concerned" about the latest Israeli-Palestinian crisis.

"We urge Israel to exercise restraint and halt military action, and call on Palestine to release the hostage as early as possible," said Jiang Yu, a Chinese Foreign Ministry spokeswoman, at a regular briefing. "China is deeply concerned about the increasing tension between Palestine and Israel."

Jiang said China hoped "the two parties can maintain restraint and calmness and put an end to the cycle of violence."

On Sunday, Palestinian militants affiliated with Hamas captured Israeli Corporal Gilad Shalit during a raid on a military outpost near the Gaza border, and were holding him hostage.

The abduction sparked the latest crisis between Israel and the Palestinians, which on Thursday saw Israeli troops rounding up dozens of ministers and lawmakers from the Hamas party, while pressing a military campaign in Gaza meant to win the release of the Israeli soldier.