Stocks drop 2.32% to 7-week low
China's key stock index sank 2.32 percent to its lowest close in seven weeks Tuesday, with property shares battered by lingering worries over Beijing's campaign to forestall brewing asset bubbles by steps including adding new share supplies.
The Shanghai Composite Index ended at 3,050.520 points, also hit by year-end cash calls for settlement from institutional investors including mutual funds and brokerages.
Losing Shanghai A shares outnumbered gainers 792 to 95, while turnover picked up to 99 billion yuan ($14.50 billion) from Monday's two-month low of 90 billion yuan ($13.18 billion).
The index closed below its 125-day moving average, now at 3,094 points, for the first time since September 30. The index managed a mild technically-driven bounce on Monday after sagging below that key support level.
The index has dropped nearly 10 percent from its November 24 high of 3,361 points.
Traders, however, said the slump did not reflect a worsening of China's fundamentals, including the prospects for economic recovery and improved corporate earnings.