HONG KONG: China and Hong Kong stocks tumbled on Thursday, joining a broader decline across Asia, as risk appetite was further dampened after a major escalation in the US and Israel’s war with Iran.
The Shanghai Composite index briefly slipped past the 4,000 floor for the first time since January, before closing down 1.4 percent at 4,006.55.
The blue-chip CSI300 index dipped 1.6 percent.
Risk sentiment took a beating globally after Tehran fired missiles at oil and gas targets throughout the Gulf, including key LNG sites in Qatar, sending oil prices sharply higher.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 2.8 percent.
“Market volatility will stay elevated for now, and there’s little visibility about how the conflicts will unfold. Both have dampened investors’ willingness to deploy capital and kept them on the sidelines,” said Cusson Leung, chief investment officer at KGI.
The firm, however, continues to favour Chinese equities, as their lower correlation with global markets positions them as an attractive diversification opportunity, he noted.
Declines were across the board, with the CSI SWS Non-Ferrous Metal Index and the CSI SH-SZ-HK Gold Industry Index losing more than 6 percent to rank among the biggest losers following the gold price plunge.
The CSI 300 Energy Index jumped 4.2 percent following the surge in oil prices.
In Hong Kong, the benchmark Hang Seng Index lost 2 percent, and the Chinese H-share index, the Hang Seng China Enterprises Index, fell 1.6 percent.
Internet giant Tencent tumbled nearly 7 percent, the worst single-day decline since April last year, after the firm announced a higher AI investment in 2026 after chip curbs hit capex plans.
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