August 29, 2011 (Chinavestor) Chinese stocks were mixed in Asia on Monday. China Petroleum & Chemical Corporation (HKG:0386) (NYSE:SNP), Asia's largest refiner by volume, reported a surprise 12% rise in profits sending it shares the highest among 42 components of the Hang Seng Index (INDEXHANGSENG:.HSI). The index itself advanced 282.2 points or 1.4% led by upstream oil companies. Shanghai Petrochemical (HKG:0338) and Yizheng Chemical (HKG:1033) surged 5.6%, each. The rally was universal, stocks that advanced outnumbered those that fell three to one among components of the Hang Seng Index (INDEXHANGSENG:.HSI). But disappointing earnings continued to hurt China Life Insurance Corp. (HKG:2628) and Aluminum Corp. of China (HKG:2600).

But the picture was remarkably different on the Mainland. Financials stocks sent the Shanghai Composite Index (SHA:000001) 35.8 points or 1.4% lower fro the day after financial regulators ordered banks to put more reserves aside. Investors have hoped for an end to the tightening cycle but they got just the opposite. 

Chinese ETFs ended last week on a high note, riding on the back of the DJIA. Outlook remains solid for the iShares FTSE/Xinhua China 25 Index (NYSE:FXI) for most of its components advanced in Asia on Monday. The rally was less universal among small cap stocks, as components of the Guggenheim China Small Cap ETF (NYSE:HAO) testify.

If components of the Hang Seng Index (INDEXHANGSENG:.HSI) were proxy for ADR trading, outlook is best for China Petroleum & Chemical Corporation(NYSE:SNP) and Sinopec Shanghai Petrochemical (NYSE:SHI). Huaneng Power Int. (NYSE:HNP), Yanzhou Coal (NYSE:YZC) and China Eastern Airlines (NYSE:CEA) were among the best components of the Hang Seng Index as well. But Aluminum Corp. of China (NYSE:ACH) and China Life Insurance (NYSE:LFC) are bound to fall right at the opening bell.