Stock markets plunge after sluggish economic data

Stock markets on the Chinese mainland saw a major decline on Tuesday amid concerns over the country's economic health following a series of disappointing macroeconomic data and a new batch of IPOs.

The Shanghai Composite Index declined by 1.82 percent or 42.59 points to 2,296.55 points on Tuesday. The Shenzhen Component Index plunged by 2.36 percent or 191.58 points to 7,921.07 points.

Combined turnover on the two bourses on Tuesday was 499.36 billion yuan ($81.24 billion), up from the previous trading's 408.16 billion yuan.

The Ministry of Commerce said Tuesday the country's foreign direct investment shrank 14.0 percent in August to $72 billion, adding worries to investors after another data over the weekend showed a slowdown in the country's industrial output in the same month.

Investors are also concerned about a possible diversion of funds from the existing stocks as a new round of IPOs is set to begin. Two companies begin subscription on Thursday and another 11 companies will join the move next week.

The mainland stock markets saw a broad-based fall on Tuesday, after almost all sectors except the steel sector saw losses on Monday.

Aviation companies, which gained in the previous session, fell back on Tuesday. AVIC Aircraft Co sank 7.80 percent to 14.90 yuan and China Avic Electronics Co shed 6.91 percent to 25.20 yuan.

Machinery, IT, chemical and auto companies also saw more than 3 percent fall on average.

Meanwhile, the steel sector bucked the downward trend. Shandong Iron and Steel Co gained 6.28 percent to 2.03 yuan.

ChiNext, China's NASDAQ-style board for high-tech and start-ups listed in Shenzhen, tumbled 3.47 percent or 53.01 points to 1,473.13 points on Tuesday.

ChiNext's two biggest companies, Huayi Brothers Media Corp and Leshi Internet Info & Tech Corp, slid 2.69 percent and 2.18 percent, respectively.