A stock indicator shows the benchmark Shanghai Composite Index on Jan 13, 2016. [Asianewsphoto by Xie Zhengyi]

Chinese equities slumped on Wednesday as the better-than-expected trade data failed to boost investors' sentiment.

The benchmark Shanghai Composite Index tumbled by 2.42 percent to close at 2949.6 points, dropping below the psychologically-sensitive level of 3,000 points.

The gauge has declined by 16 percent since the beginning of the year, making it the world's worst-performing global index.

The smaller Shenzhen Composite Index retreated by 3.06 percent while the start-up index ChiNext that tracks high-tech and innovative companies dived by 4.09 percent.

The selloff intensified after 2:30 pm, with stocks of shipbuilders, construction material and aircraft manufacturers leading the decline.

China's export in 2015 was 14.14 trillion yuan ($2.15 trillion), down 1.8 percent from the end of 2014, the first drop since 2010, according to the General Administration of Customs.

Praveen Singh, an analyst at French bank Societe Generale, said in research note that Chinese stocks remain vulnerable to slowing growth expectations despite the recent correction.

"Chinese equities have historically traded at a discount to other major equity markets, but if we compare the current cost of capital to its historical average we find that Chinese equity valuations are still not cheap enough to be attractive given their high volatility," he added.