Chinese shares were down on Tuesday as risk appetite waned amid fading hopes for the near-term de-escalation of U.S.-Iran tensions.
The Shanghai Composite Index, the main gauge of Chinese stocks, closed 0.8% lower to 3,934.09. The Shenzhen Component Index declined 0.4% to 14,259.44.
Talks between the U.S. and Iran grew more complicated when U.S. President Donald Trump demanded compensation for Tehran's past actions, a response to Iran's earlier insistence that U.S. reparations were a prerequisite for reopening the Strait of Hormuz, CNN reported.
Iran also made clear that a separate agreement with Oman would not suffice unless the U.S. met all its terms. The dueling demands suggested little progress toward resolving the standoff.
In company news, Guoyi (SHA:688828) closed at 110.23 yuan per share on its first day of trading on the Shanghai bourse. This marked a 419% jump from the quantum instrument maker's initial public offering price of 21.22 yuan per share.