Exchanges decline as investors pull out of bank, energy stocks

Chinese stock exchanges declined on Tuesday, as investors sold shares linked to energy and banks.

The benchmark Shanghai Composite Index saw its biggest drop in two weeks, falling by 3.03 percent or 94.83 points to 3,032.61 points.

The Shenzhen Component Index nudged down by 0.36 percent or 37.73 points to 10,570.79 points.

The CSI 300 index of the largest listed companies in Shanghai and Shenzhen fell by 2.05 percent to 3,324.92 points.

Total turnover on the two bourses was 634.30 billion yuan ($101.84 billion), down from the previous trading day's 801.22 billion yuan.

The fall on Tuesday was led by steel, coal, oil and nonferrous stocks, which saw an average decline of more than 5 percent.

China Shenhua Energy Co slumped by 5.72 percent to 19.12 yuan and China Coal Energy Co dropped by 7.32 percent to 6.84 yuan.

Banks also plunged by almost 5 percent on average. Agricultural Bank of China dropped by 5.62 percent to 3.36 yuan and Bank of Communications Co fell by 5.22 percent to 6.17 yuan.

The China Securities Regulatory Commission, the country's stock market regulator, announced in a statement on Friday that it was investigating 18 companies for possible market manipulation. Many of the companies listed in the statement plunged by the daily limit of 10 percent on Monday.

Some of the 18 companies continued to fall on Tuesday. Cloud Live Technology Group Co and Shanxi Baiyuan Trousers Chain Management plunged by the daily limit of 10 percent to 5.33 yuan and 36.27 yuan, respectively.

The ChiNext Index, China's NASDAQ-style board for high-tech and fast-growing start-ups, fell by 1.41 percent or 21.39 points to close at 1,496.53 points, following a fall on Monday of nearly 5 percent.

In Hong Kong, the benchmark Hang Seng Index inched down by 0.32 percent to 23,333.69 points on Tuesday.