Hong Kong: Stocks sank in Hong Kong and Shanghai on Wednesday, reversing early gains, following reports that the US was considering more than doubling threatened tariffs on $200 billion of Chinese goods.

The Hang Seng Index fell 0.85 percent, or 242.27 points, to 28,340.74.

And the benchmark Shanghai Composite Index dropped 1.80 percent, or 51.87 points, to 2,824.53 while the Shenzhen Composite Index, which tracks stocks on China's second exchange, shed 1.72 percent, or 27.13 points, to 1,549.28.