Market Turmoil: China's Stock Plunge Amid Middle East Tensions

Chinese and Hong Kong stocks witnessed a significant downturn on Thursday, driven by escalating geopolitical tensions in the Middle East, which hampered investor sentiment across various sectors.

Despite the anticipation surrounding the Lujiazui Forum in Shanghai, the event failed to introduce substantial market-boosting measures, leaving investors searching for policy direction. Thursday also saw continued airstrikes between Iran and Israel, with the United States contemplating involvement, further exacerbating regional instability.

The market's cautious stance was evident as the CSI300 and Shanghai Composite indexes both dipped by 0.8% at closing. More pronounced losses were seen in Hong Kong, with the Hang Seng Index suffering a 2% drop, the largest in months. While tech and healthcare faced considerable losses, Foshan Haitian Flavouring made a strong market entry in Hong Kong by rising 4.7%.

(With inputs from agencies.)