Chinese shares tumbled to their biggest loss in almost four months amid a flurry of new share issues, dragging down markets across much of Asia.
The benchmark Shanghai Composite closed down 4.1% to 4,298.71 – its biggest one day decline since 19 January.
Hong Kong’s Hang Seng index was down 1.3% to 27,755.54 – closing at its lowest in two weeks.
Investors were also selling after hopes receded that China would follow others in the region and cut interest rates.
Disappointing factory activity data on Monday had boosted investor confidence that China may introduce measures to help boost its slowing economy.