Markets Lower Despite Regulatory Vow To Stabilize Sentiment

Hong Kong and China Mainland equities are opening lower this week on higher US yields after much stronger than expect US Jobs data. China government officials have for weeks been trying to reassure the market they will look to put polices in place to support it, however with little follow through and details of these policies market participations have grown weary.

• Hong Kong equities are lower across the board today, being led lower by tech down by 1.5% and Mainland property down another 2.50%.
• China Mainland equities are also lower, the CSI300 hit 5 years lows in Friday afternoon trading lower by 3.50% at one stage, however recovered off those lows to trade just 1.25% lower on the day, possibly on the back of further news of market support. Traders have been waiting to hear about details surrounding the market support the government has been speaking about, but have been growing skeptical current announced support measures will not be enough to change sentiment in the market. It has been reported earlier this morning China will take a zero tolerance approach on crime that would cause serious damages to Capital Markets. January also marked a record for Chinese money flowing into Overseas equities, after inflows into foreign benchmark ETFs hit $2b.
• China's Caixin PMI was released earlier showing services activity expanded but at a slight slow pace in January at 52.7 from 52.9 in December. The CSI300 is currently lower by 0.30%, while ChiNext is 1.30%.