The Shanghai Composite dropped 72.28 points or 1.99% to 3564.08 on Wednesday, extending declines for a third consecutive session as escalating worries over policy tightening in China continued to weigh on sectors with almost record-high valuations. Further denting sentiment, Hong Kong’s government increased its stamp duty on equity transactions to 0.13% from 0.1% on the city’s stock exchange for the first time in almost two decades to fund a widening budget deficit. In the US, Fed Chair Jerome Powell said in a testimony to the Senate Banking Committee on Tuesday that the economic recovery remains uneven and the path ahead is highly uncertain while pledging to hold rates at the current level near zero until the economy reaches maximum employment and inflation has risen to 2%. On the pandemic front, the mainland saw 12 new COVID-19 cases on Tuesday, up from 10 a day earlier. The Hang Seng Index plunged 914 points or 3% to 29718. Historically, the China Shanghai Composite Stock Market Index reached an all time high of 6124.04 in October of 2007. The Shanghai SE Composite is a major stock market index which tracks the performance of all A-shares and B-shares listed on the Shanghai Stock Exchange, in China. It is a capitalization-weighted index. The SSE Composite Index has a base value of CNY100 as of December 19, 1990.