Market Mayhem: China and Hong Kong Stocks Plunge Amid U.S. Policy Concerns

China and Hong Kong stocks experienced significant declines, driven by disappointing tech earnings and concerns over U.S. policy under President-elect Trump. Key indices suffered major losses, with further anxieties directed at potential U.S. tariffs on Chinese imports. Investors remain apprehensive despite failed stimulus measures.

In a tumultuous trading session, stocks in China and Hong Kong plummeted on Friday, marking their most significant single-day losses since October 9. The blue-chip CSI300 and Shanghai Composite were notably hit, with investor concerns exacerbated by underwhelming earnings from major tech firms.

Adding to the market woes were fears about future policies from U.S. President-elect Donald Trump, as major indices like the Shanghai Composite dropped over 3% and the CSI300 dipped similarly. Specific sectors such as finance, healthcare, and real estate were particularly affected, with biotech firms seeing declines exceeding 4%.

The ripple effect was evident in Hong Kong, as the Hang Seng index fell 1.89%, and the tech-driven Hang Seng Tech Index sunk by 2.6%. Meanwhile, the Texas governor's directive to stop investments in China contributed to the somber market mood, with investors wavering due to looming U.S. tariffs and unsatisfactory fiscal stimulus outcomes.

(With inputs from agencies.)