SHANGHAI: China stocks plunged the most in two months on Wednesday as stimulus disappointed investors, sparking more policy easing arguments from analysts, while Sino-US tensions returned to the fore after President Joe Biden called Chinese President Xi Jinping a “dictator”.
China’s blue-chip CSI300 Index closed down 1.5%, and the Shanghai Composite Index slumped 1.3%. Both indexes logged the biggest daily fall since April 21.
Hong Kong benchmark Hang Seng Index plunged 2% and the Hang Seng China Enterprises Index dropped 2.2%.
Chinese stock markets will be closed for Thursday and Friday for the Dragon Boat Festival, while Hong Kong market will be shut for Thursday.
Other Asian stocks also struggled as a lack of new stimulus steps from Beijing frustrated investors, who wondered just how hawkish the US Federal Reserve would be later in the day.
China cut its key lending benchmarks on Tuesday to shore up a slowing economic recovery, but the cut to the five-year rate was smaller than many expected.
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