Chinese shares dropped 1.66 percent percent on Tuesday amid losses in world markets.
Led by Wall Street falls, the country's stocks opened 0.15 percent lower. The situation worsened when the neighboring stock markets posted losses, said analysts.
Stocks in east Asian markets posted widespread losses on Tuesday with Japanese shares down 3 percent and shares of the Republic of Korea down 2.06 percent.
The benchmark Shanghai Composite Index closed down 1.66 percent, or 31.19 points, to finish at 1,843.61. The Shenzhen index eased 0.45 percent, or 27.36 points, to close at 6,099.77 points.
The combined turnover was 83.214 billion yuan (12.2 billion U.S. dollars) compared with Monday's 78.636 billion yuan.
Shihua Financial Information analyst Chen Xiaohui said adjustment was normal and reasonable as it took time to restore investors' confidence after the government kicked off massive measures to sustain the economy.
Lingering concerns over a slowing economy and grim corporate outlook still hurt financial stocks and heavyweights, said analysts.
Haitong Securities lost 7.25 percent to 12.79 yuan. Bank of Communications retreated 3.69 percent to 4.96 yuan. Sinopec, Asia's largest oil refiner, went down 3.42 percent to 7.34 yuan.
Steel stocks, cement stocks and building material stocks were hot spots as they continued to rise boosted by the country's economy stimulus plan, said Chen.
Hebei-based Taihang Cement rose by the daily limit of 10 percent to close at 3.82 yuan. Fujian Cement advanced 9.57 percent to 3.78 yuan.
The Shanghai-based Longyuan Construction Group rose by the daily limit of 10 percent to finish at 5.15 yuan, so was the Southeast Spaceframe Co. which closed at 5.15 yuan.
(Xinhua News Agency November 11, 2008)