Chinese ADRs & ETFs fell. Bilibili, CWEB down 5%; Alibaba, NIO, Baidu down about 4%; Li Auto, YINN, CHAU XPeng down around 3%.

China announced sanctions on Tuesday against five U.S.-linked subsidiaries of South Korean shipbuilder Hanwha Ocean amid trade tension between the world's two largest economies, sending the company's shares sharply lower.

The commerce ministry's move comes on the day China and the United States implement additional port fees targeting each others' vessels, although China has exempted ships it built.

Organisations and individuals in China are prohibited from engaging in transactions, cooperation or related activities with the Hanwha units, the ministry said in a statement.

"Hanwha Ocean's U.S.-related subsidiaries have assisted and supported the U.S. government's relevant investigative activities, thereby jeopardising China's sovereignty, security, and developmental interests," it added, without elaborating.