China Equities Mixed, Ahead Of US Payrolls

Hong Kong stocks are up today, but off highs from earlier, while China Mainland stocks have lagged the move and are now trading in the red. Early gains were spurred on by strong earnings from US Tech giants, pushing Heng Sang up as much as 1.5%. The PBoC has pledged 150b yuan worth of low-cost funds for lending to housing and infrastructure in the past month, this brings the outstanding amount of the program to 3.4 trillion yuan, according to the central bank statement.

• Hong Kong indices are still trading in the green today, however far from the highs in early morning trading. The Mainland housing index was up as much as 4.6% on the back of the central bank statement overnight, we have drifted lower throughout the day to trade up 2.6% higher. Elsewhere the tech index was pushed higher this morning on the back of strong earnings from US Tech giants and news that Tencent has been given regulatory approval for their DnF game, the index at one point was 2.35% higher, traders have looked to lock in profit prior to US payroll tonight, and we currently trade just 0.44% higher.
• China Mainland indices lagged the move higher this morning, briefly trading in the green, before we saw traders look to book profits and we now trade down for the day, the CSI300 is -0.70% lower while the ChiNext lower by 2.00%. Investors are still cautious around recently policy announcements about supporting the markets, while China Evergrande ordered liquidation weighs of the minds of investors.