China stocks tumble after US market slump

China stocks tumbled on Wednesday, reversing the rally in the previous session, affected by a slump in the US stock market, and especially US technology shares.

The Shanghai Composite Index fell by 1.86 percent to close at 3,254.63 points, while the smaller Shenzhen Composite Index plunged 3.25 percent to 12,861.75 points.

The ChiNext Composite Index, meanwhile, plummeted 4.8 percent to 2,523.4 points, and the bluechip CSI300 Index ended 2.34 percent lower at 4,584.59 points.

Trading volume on the two major bourses expanded to nearly 1.04 trillion yuan (US$151.36 billion), compared with 924.4 billion yuan on Tuesday.

Turnover on the ChiNext board continued to be higher than that on the Shanghai main board at a record 402.2 billion yuan.

At close, the mainland saw a net outflow of 3.76 billion yuan to overseas markets via the Stock Connect Schemes linking Shanghai and Shenzhen with Hong Kong.

Despite that, Sinolink Securities said emerging markets, represented by A-shares, would continue to benefit from global liquidity easing, and more foreign capital would flow into the mainland markets.

The shares of 45 listed firms jumped more than 9 percent, while over 180 saw losses of over 9 percent. 

Among industry sectors, medical shares led the drop, with Guangzheng Group Co tumbling by the daily limit of 10 percent while the ChiNext-listed Hunan China Sun Pharmaceutical Machinery Co and Contec Medical Systems Co both lost over 10 percent.

Stocks related to environmental protection, meanwhile, slumped from the strong gains in the previous session. Tianjin Motimo Membrane Technology, CEC Environmental Protection Co and Xingyuan Environment Technology Co all lost over 13 percent.

The education sector, food and beverage firms, and culture and media shares were also among the big decliners, while the iron and steel industry, aerospace shares and airports posted gains.