SHANGHAI: Stocks fell across the board in China and Hong Kong on Wednesday, with China’s blue-chip index closing at near five-year lows as weak growth and property data deepened worries around the world’s second-largest economy.

Risk appetite was also curbed by president Xi Jinping’s vow to create a financial system that “inherently differs” from the Western model, and calls for financial regulators to have “long teeth and thorns.” China’s blue-chip CSI 300 Index dropped 2.2% to its lowest level since early 2019. The Shanghai Composite Index fell 2.1%.

Hong Kong’s Hang Seng Index tumbled 3.7% to 14-month lows, led by property and tech shares.

China’s economy grew 5.2% in the fourth quarter from a year earlier, official data showed, missing analysts’ expectations.

Investor anxiety was compounded by China’s December new home prices falling at the fastest pace since February 2015 and marking the sixth straight month of decline.

“Share price weakness reflects investor pessimism toward China’s economy, which is undergoing painful restructuring,” said hedge fund manager Zhang Kaihua.

In addition, the government’s increasingly forceful hand in the economy threatens to reduce vitality and creativity, he said.

President Xi Jinping vowed on Tuesday to create a modern financial system with Chinese characteristics.

A financial powerhouse should be based on “a strong currency, a strong central bank ... strong financial supervision and a strong team of financial talents,” Xi was quoted by official Xinhua news agency as saying.

The message is that “China won’t flood the financial system with a lot of liquidity” and will tighten regulations, said Yang Tingwu, vice general manager of asset manager Tongheng Investment.

Shanghai’s tech-focused STAR 100 Index slumped 4%, while the tourism sector lost 3.1%.

In Hong Kong, an index tracking mainland developers tumbled 5.5% to record lows, while the Hang Seng Tech Index shed 5 percent.