Markets rocked by financial sector losses

Stock markets on the Chinese mainland plummeted Tuesday as financial stocks contracted.

The Shanghai Composite Index shed 0.61 percent, or 13.51 points, to finish at 2,207.53; while the Shenzhen Component Index slipped 0.62 percent, or 54.49 points, to close at 8,664.80.

Combined turnover at the two exchanges jumped to 273.6 billion yuan ($44.69 billion). up from 239.3 billion yuan Monday.

From the opening bell, both indices were hard pressed by drops among financial and real estate development shares. The Shanghai Composite bottomed out below the 2,200-point mark during morning trading, although strong performances from stocks exposed to the Shanghai free trade zone and private banking moderated losses later in the day.

Among brokers, Southwest Securities Co Ltd tumbled 5.75 percent to 9.50 yuan, while Citic Securities Co Ltd lost 4.07 percent to 12.25 yuan.

In the banking sector, Ping An Bank Co Ltd led the charge into negative territory after surrendering 4.74 percent to 12.27 yuan.

Stocks connected to the nascent private banking industry beat the broader market after the State Administration for Industry and Commerce approved more corporate names of enterprises planning to establish banking businesses. Beijing Centergate Technologies (Holding) Co Ltd and Suning Commerce Group Co Ltd, both of which have plans to venture into the financial sector, jumped to the 10-percent daily limit to close at 6.67 yuan and 13.21 yuan respectively.

The hype surrounding Shanghai's free trade zone boosted related stocks. Both Shanghai Chengtou Holding Co Ltd and Shanghai Waigaoqiao Free Trade Zone Development Co Ltd broke through the daily limit.