Hang Seng, China Stocks Soar as Beijing Pledges Support Amid Equity Rout

Hong Kong’s stock market posted double-digit gains during the Wednesday afternoon trading session after China's State Council pledged support of the stock market.

• Xinhua reported (Chinese language) that the Financial Stability and Development Committee of the State Council pledged to keep the market stable and support overseas share listings.
• U.S. financial regulators and their Chinese counterparts are currently engaged in a dispute over the availability of Chinese company audits to U.S. officials. The U.S. has threatened to delist Chinese ADRs should these audits not be provided.
• Tencent was up nearly 20% and Alibaba hit 19% on the news.
• The broader Hang Seng index is up 9%, while the specific China tech index in Hong Kong is up 12%.
• According to state media reports, regulation of China’s tech sector will soon normalize. The government also said they would handle some of the risks for property developers.
• Bitcoin’s (BTC) price remains relatively unaffected on the news.
• The price of the world’s largest digital asset briefly touched $41,000 late morning Asia time, but was trading around $39,450, up 2.82%, at time of writing.
• Traders report that liquidity is now extremely thin in crypto, hampering dynamic market moves, as the market awaits the Fed Minutes.