Chinese stocks and the yuan slumped as fears of worsening Sino-American tensions further undermined investor confidence after a slew of disappointing economic developments.

Hong Kong's Hang Seng Index closed 1.45% lower at 20426.93 on Monday. The lack of clarity on Trump's next steps as U.S. president, and the lackluster fiscal plans by China means economic risks could persist,

Chinese stocks in Hong Kong declined after a high-profile legislative meeting let down some investors who had been hoping for large-scale stimulus to revive domestic demand and combat deflation.

Hong Kong stocks slid after data showed borrowing in mainland China slowed in October and investor confidence remained subdued following Beijing’s latest policy announcements. The Hang Seng Index fell 1.