Chinese shares drop due to policy jitters

China's stocks dived for the fourth consecutive trading day Tuesday amid concerns of tighter monetary policies and tepid economic outlook.

The benchmark Shanghai Composite Index decreased 1.04 percent, or 23.99 points, to end at 2,286.61. The Shenzhen Component Index lost 1.22 percent, or 113.52 points, to 9,163.64.

Combined turnover increased to 197.28 billion yuan (31.31 billion U.S. dollars) from Monday's 144 billion yuan.

The People's Bank of China, or the central bank, last week restarted repurchase operations to drain liquidity amid rising domestic inflation.

Analysts expect more such moves to tighten money supply as inflation is likely to pick up this year.

Banks led the losses after the media reported that the country's banking regulator had launched a nationwide probe of wealth management products.

China Mingsheng Bank Corp. plunged 4.7 percent to 9.74 yuan. Industrial Bank Co., Ltd fell 2.83 percent to 18.55 yuan.

Inner Mongolia Baotou Steel Rare-Earth slumped 2.44 percent to 30.41 yuan, as the tepid macroeconomic situation may dampen demand for resources.

Real estate developers bucked the trend to gain despite the government's emphasis on the continuation of property curbs.

China Vanke Co., the nation's largest listed property developer, increased 0.99 percent to 11.22 yuan. Poly Real Estate Group Co., another major developer, added 0.09 percent to 11.58 yuan.