China shares trim losses after Monday shock

Chinese shares extended losses on Tuesday following Monday's drastic slump as the benchmark Shanghai Composite Index lost 0.19 percent, or 3.73 points, to end at 1,959.51, the lowest point in nearly seven months.

The Shenzhen Component Index shrank 1.23 percent, or 93.43 points, to 7,495.10.

China's central bank on Monday urged lenders to control risks from credit expansion after the country's short-term interbank rates rocketed to unusual levels during the past two weeks, signalling no intention to ease the cash crunch that investors fear would exacerbate the current economic slowdown.