China stocks flat; Hong Kong drops on EV stock losses

Chinese stocks struggled for direction on Wednesday as market turned to risk-off mode amid weak economic data and U.S. election risks.

The Shanghai Composite index 000001 slipped to below the key 2,900 level in morning trade but ended the midday up 0.1% at 2,918.27 points.

Hong Kong stocks dipped, dragged down by electric vehicle makers following disappointing second quarter results from Tesla TSLA. NIO NIO and XPENG XPEV fell 3.9% and 4.9% respectively.

** By midday, China's blue-chip CSI300 index 3399300 was down 0.1%, with its financial sector sub-index 3399914 lower by 0.21%, the consumer staples sector 0000912 down 0.37%, the real estate index 000952 down 1.48% and the healthcare sub-index 399913 down 0.09%.

** Chinese H-shares listed in Hong Kong HSCEI fell 0.51% to 6,163.37, while the Hang Seng Index HSI was down 0.62% at 17,361.12.

** The smaller Shenzhen index 399106 was down 0.22%, the start-up board ChiNext Composite index 3399006 was weaker by 0.18% and Shanghai's tech-focused STAR50 index (.STAR50) was down 0.06%​.

** Around the region, MSCI's Asia ex-Japan stock index (.MIAPJ0000PUS) was weaker by 0.29% while Japan's Nikkei index NI225 was down 1.11%.

** The yuan USDCNY was quoted at 7.2756 per U.S. dollar, 0.01% weaker than the previous close of 7.2747.