China and Hong Kong Stocks Hit Seven-Month Low Amid Tech Sell-Off and Oil Price Slump

China and Hong Kong's stock markets fell drastically, reaching a seven-month low. This drop is primarily due to a significant tech sell-off on Wall Street and declining oil prices. Additional factors include a slowdown in China's services sector and rising trade tensions between China and Canada.

China stocks closed at seven-month lows on Wednesday, mirroring sharp declines in Hong Kong shares, which fell over 1%. These drops were largely influenced by a significant tech sell-off on Wall Street and slumping oil prices, negatively impacting investor sentiment across Asian markets.

Risk appetite was further diminished by China's slowing services sector and heightened trade tensions with Canada. The blue-chip CSI 300 index in China and the Shanghai Composite Index both fell by 0.7%, while Hong Kong's Hang Seng Index declined by 1.1%.

Tech shares in both markets were hit hard, especially after Nvidia's stock plunged by 9.5% overnight. Energy stocks also saw notable declines, leading both Shanghai's and Hong Kong's markets lower as oil prices continued to fall. Hong Kong's energy index dropped 4.5%, and China's CSI energy index decreased by 2.2%.

(With inputs from agencies.)