Chinese stocks experienced a sharp selloff on Wednesday, continuing a volatile trend across Asia-Pacific markets. The Hang Seng Index (HSI) in Hong Kong dropped 1.39% to 20,635.11, following Tuesday's devastating 9.41% plunge—its worst single-day loss since the 2008 financial crisis.
What Happened: The mainland CSI 300 index also suffered, dropping 5.39%. This sharp reversal comes after weeks of robust performance that had positioned Chinese stocks among the top global performers year-to-date.
Tech giants bore the brunt of the downturn:
- JD.com (NASDAQ:JD) plummeted 7.52% on the Hong Kong stock exchange.
- Alibaba (OTC:BABAF) fell 2.78%
- Baidu (NASDAQ:BIDU) lost 1.65% on HKEX
- Tencent (OTC:TCEHY) declined 1.32%
Analysts attribute the selloff to investors locking in profits and growing disappointment over the lack of aggressive fiscal stimulus from Beijing.
The contrast was stark in Japan, where the Nikkei 225 climbed 0.6%, highlighting the divergent market sentiments across the region.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
