SHANGHAI: China main stock benchmark tumbled to five-month lows on Wednesday, as fears grew that rapid interest rate hikes would tip the global economy into recession.

The blue-chip CSI 300 Index and the Shanghai Composite Index both plunged 1.6% at close. The CSI 300 closed at the lowest level since April 26.

The Hang Seng Index slumped 3.4%, languishing around 11-year lows, while the Hang Seng China Enterprises Index ended lower 3.1%.

World shares sank to two-year lows on Wednesday, hammered by spiralling borrowing costs that intensified fears of a global recession and sent investors into the arms of the safe-haven dollar.

China’s onshore yuan touched the weakest level against a rising dollar since the global financial crisis of 2008, while its offshore counterpart hit the lowest on record. Foreign investors sold more than 3.8 billion yuan ($530 million) of Chinese shares through the stock connect scheme on Wednesday, following two days of net buying.

Non-ferrous metal stocks tumbled 5.2%, new energy firms plunged nearly 4%.