Chinese Stocks Slump Amid Economic Woes and U.S. Election Risks

Chinese stocks dropped on Wednesday, with the Shanghai Composite Index hitting a five-month low due to weak economic data and U.S. election uncertainties. Electric vehicle stocks like NIO and XPENG also fell, dragging down Hong Kong's Hang Seng Tech index. Broader Asian markets, including Japan, saw declines as well.

Chinese stocks fell sharply on Wednesday, with the Shanghai Composite Index hitting its lowest level in over five months, as investor sentiment soured on weak economic data and U.S. election risks. While the Shanghai Composite Index briefly dipped below the critical 2,900 level, it ended the day just above it.

Hong Kong's Hang Seng index also declined, pulled down by underperforming electric vehicle makers following Tesla's disappointing second-quarter results. NIO and XPENG recorded drops of 4.4% and 5%, respectively. As a result, the Hang Seng Tech index lost 1.5%. At the day's close, the Shanghai Composite index fell 0.46% to 2,901.95, and the blue-chip CSI300 index dropped 0.63%. Various sectors witnessed declines, including financials, consumer staples, real estate, and healthcare. The smaller Shenzhen index was down 1.32%, and the ChiNext Composite index slipped 1.229%.

In broader Asian markets, the Hang Seng index decreased by 158.31 points (0.91%) to 17,311.05, while the Hang Seng China Enterprises index fell 0.85% to 6,142.32. Although the energy shares sub-index of the Hang Seng rose 1.4%, other sectors like IT, financials, and property saw declines. The MSCI's Asia ex-Japan stock index was down 0.35%, and Japan's Nikkei index closed 1.11% lower.

(With inputs from agencies.)