China stocks head lower amid weak confidence

BEIJING -- Chinese stocks closed lower on Tuesday as weak confidence over the economic outlook continued to weigh on the market.

The benchmark Shanghai Composite Index dipped 0.91 percent, or 18.96 points, to finish at 2,059.54. The Shenzhen Component Index closed at 8,390.15, down 1.1 percent, or 93.54 points.

Combined turnover contracted to 89.2 billion yuan ($14.2 billion) from 123.15 billion yuan yesterday.

Losers outnumbered gainers by 594 to 317 in Shanghai and by 816 to 625 in Shenzhen.

Sentiment on China's equity markets remained low as the country's current pro-growth policies had not yet had a substantial effect on the slowing economy.

Data released earlier this month suggested that China's industrial production and investment continued to falter in August.

Shares of ship-makers, rare earths and coal producers led the losses on Tuesday. China Shipbuilding Industry Corporation lost 3.31 percent to end the day at 4.96 yuan per share.

Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co, the country's largest rare earth metal producer, dived 3.68 percent to close at 33.23 yuan per share.

Banking shares declined across the board. China Minsheng Banking Co. moved down 1.95 percent to 5.54 yuan, while the Agricultural Bank of China shed 0.81 percent to 2.44 yuan.

Bucking the trend, the glass-making sector gained on Tuesday over reports that China will soon launch glass futures contracts. Guangdong Golden Glass Technologies Limited went up 5.41 percent to 7.4 yuan per share.