Chinese shares fell on Tuesday as investors turned cautious amid rising bets that the U.S. Federal Reserve will raise rates and concerns over subdued domestic consumption following a quiet "618" shopping festival.
The Shanghai Composite Index, the main gauge of Chinese stocks, fell 1.4% to 4,106.25. The Shenzhen Component Index plunged 3.2% to 15,854.20.
Rising bets on a Fed interest rate hike bore down on investor sentiment.
Bank of America now expects rate increases of 75 basis points across September, October and December, marking a reversal from its recent forecast no change this year.
Meanwhile, gross merchandise value, a measure of sales from e-commerce platforms, stood at 863.6 billion yuan during the mid-year 618 shopping festival that spanned from May 13 to June 18. The recent number was nearly flat compared with last year's 855.6 billion yuan, Reuters reported.
In company news, Jinan Shengquan (SHA:605589) will undertake a convertible bond offering of 2.5 billion yuan. Shares of the resin manufacturer slid 10% in recent trade.