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Chinese shares slipped 3.2 percent on Tuesday - their biggest single-day percentage drop in nine months - as investors dumped blue chips to lock in gains after the benchmark index soared 15 percent this month.
The Shanghai composite index ended at 1,604.552 points. It began sliding in early trade and extended the decline in the afternoon, posting its largest drop since a 3.8 percent tumble on August 18, 2005.
In Shanghai, A-shares worth a fairly active 38.7 billion yuan changed hands, less than the 43.4 billion yuan turnover on Monday.
China's top steel mill Baoshan Iron and Steel Co Ltd fell 2.2 percent to close at 4.8 yuan.
Top Shanghai-listed lender Merchants Bank Co, which has been rising steadily, lost 2.8 percent to 7.02 yuan.

Copyright Reuters, 2006

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