Shanghai shares fall as investor appetite weakens

Shanghai shares fell on Tuesday, as investor appetite was weak amid a global sell-off which triggered worries on the A-share market.

The Shanghai Composite Index lost 0.88 percent to close at 2,504.82 points. 

Shares of brokerages, iron and steel providers and mining companies were among the biggest decliners Tuesday. The brokerages sector lose 2.56 percent while iron and steel declined 2.52 percent, according to Chinese financial data provider Wind Information Co.

US stocks sank on Monday, with the three major indices — the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite Index — falling over 2 percent by closing. Tokyo shares plunged on Tuesday, with the Nikkei index losing more than 5 percent.

Investors became cautious on the A-share market after the global market posted slack performance.

Lu Kai, a consultant at Haitong Securities, said that "investors took a wait-and-see stance on the A-share market — they worried that global economic weakening will impact the domestic economic outlook in 2019."

Fangda Special Steel Technology Co Ltd lost 4.03 percent to 9.99 yuan (US$1.45), Shanxi Guoxin Energy Co Ltd fell 3.78 percent to 4.84 yuan, and Dongxing Securities Co Ltd retreated 3.56 percent to 9.47 yuan.