SHANGHAI: China stocks slumped to 21-month lows on Tuesday while mainland firms listed in Hong Kong plumbed their 2008 lows, as surging COVID-19 cases threatened the outlook for the world’s second-largest economy and as the central bank dashed expectations for a cut in a key lending rate.

The Ukraine crisis also weighed on sentiment, reviving worries about widening differences between Beijing and Washington as the United States raised concerns about China’s alignment with Russia, and prompting global investors to dump Chinese offshore-listed stocks, analysts said.

China’s yuan weakened against the dollar for a fourth straight session to hit a three-month low, amid signs of capital outflows on economic slowdown worries and rising geopolitical risks Beijing is facing.