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HONG KONG: Chinese stocks declined on Wednesday, with the Shanghai Composite Index hitting its lowest level in over five months, as investors turned to risk-off mode amid weak economic data and U.S. election risks.

The Shanghai Composite Index slipped below the key 2,900 level briefly, but it was slightly above 2,900 points at the close.

Hong Kong stocks also dipped, dragged down by electric vehicle makers following disappointing second-quarter results from Tesla. NIO and XPENG fell 4.4% and 5%, respectively.

The Hang Seng Tech index dropped 1.5%.

At the close, the Shanghai Composite index was down 0.46% at 2,901.95.

The blue-chip CSI300 index was down 0.63%, with its financial sector sub-index lower by 0.56%, the consumer staples sector down 1.13%, the real estate index down 2.88% and the healthcare sub-index down 0.89%.

China stocks post biggest fall in 6 months

The smaller Shenzhen index ended 1.32% lower and the start-up board ChiNext Composite index was weaker by 1.229%.

In Hong Kong, the Hang Seng index was down 158.31 points, or 0.91%, at 17,311.05. The Hang Seng China Enterprises index fell 0.85% to 6,142.32.

The sub-index of the Hang Seng tracking energy shares rose 1.4%, while the IT sector dipped 1.47%, the financial sector ended 0.78% lower and the property sector dipped 1.27%.

Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.35%, while Japan’s Nikkei index closed down 1.11%.

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