China's Stock Market Struggles Amid Investor Discontent

China and Hong Kong stocks dropped to their lowest in over a week due to lackluster details in stimulus plans. Though some sectors showed gains, overall economic data paints a slowing growth narrative, with retail sales under expectations. Investors remain cautious amid potential U.S. policy shifts.

China and Hong Kong stock markets have plunged to their lowest levels in over a week, driven by investor disappointment over the vague nature of recent government stimulus plans. Despite modest gains in the automotive and battery sectors that supported the mainland's blue-chip index, investor sentiment remains lackluster.

At the midday trading break, the Shanghai Composite fell by 0.57%, marking 3,366.89 points, while Hong Kong's Hang Seng Index slipped 0.39% to reach 19,718.56, both reaching depths not seen since early December. Meanwhile, the CSI300 index in China saw a slight uptick of 0.34%, buoyed by automakers and communication companies.

The recent economic data indicates a slowing growth pattern, as November's retail sales increased only by 3%, falling short of economist forecasts and October's gains. Investors are also wary of the implications of U.S. economic policies following the recent election, greatly affecting foreign investment behavior in Chinese markets.

(With inputs from agencies.)