China’s blue-chip stocks hit 4-month low

SHANGHAI: China’s blue-chip stocks on Wednesday closed at their lowest in more than four months, as global peers slid ahead of an expected aggressive interest rate hike from the US Federal Reserve.

Hong Kong’s main stock benchmark plunged to its lowest level since mid-March.

The CSI 300 Index ended down 0.7%, hitting the lowest level since May 9, while the Shanghai Composite Index edged down 0.2%.

The Hang Sang Index fell 1.8%, and the Hang Seng China Enterprises Index declined 2.2%.

Other Asian stocks fell, following a sell-off on Wall Street overnight. The yuan also weakened to a new 26-month low against a rising dollar right ahead of the Fed policy settings.

Russian President Vladimir Putin on Wednesday ordered Russia’s first mobilisation since World War Two, adding to concerns on an already fragile market.

Foreign investors sold Chinese stocks worth more than 3 billion yuan ($430 million) through the Stock Connect scheme.

Investors worried that rising overseas rates would drain liquidity from China markets and limit China’s central bank’s room for future monetary easing.