SHANGHAI: The mainland's key stock index closed down 0.48 percent on Tuesday after investors took profits in small-cap shares after a speculative rally over the past week.
The Shanghai Composite Index ended at 3,073.108 points, easing from its highest close in five weeks on Monday after a nearly week-long 5 percent rally driven by bargain-hunting.
Investor confidence remains fragile partly because the China Securities Regulatory Commission has been adding a large number of new shares into the market to help cool trading.
The regulator announced on Monday that it had approved two more small companies to launch initial public offerings and would review applications of four others on Friday.
Hong Kong's benchmark Hang Seng Index ended down 150.82 points at 20,906.11, while the China Enterprises Index closed up 0.87 percent at 12,017.55, its highest close in about six weeks.
Reuters
