China's shares closed down on Tuesday, depressed by profit-taking amid large caps, but companies based in the country's southern boomtown of Shenzhen gained on hopes of government restructuring.
The benchmark Shanghai composite index, grouping hard-currency B shares and yuan-denominated A shares, finished 0.73 percent lower at 1,691.009 points.
But property developer Shenzhen Zhenye (Group) Co Ltd surged its daily limit of 10 percent to 7.48 yuan after the Shenzhen city government announced plans to trim stakes in about 26 companies in the city to boost their competitiveness.
Shenzhen SEZ Real Estate Co Ltd's A shares leapt 9.97 percent to 8.49 yuan, while Shenzhen Textile Co Ltd's saw its A shares rise 9.99 percent to 12.33 yuan.
Large-cap companies, which had outpaced a recent market rally, led Tuesday's slide.
Index heavyweight Baoshan Iron and Steel Co Ltd, the world's fourth most valuable steel company, fell 2.59 percent to 7.15 yuan.
Its stock had surged 74 percent since the start of 2003 as a construction-fuelled boom in the steel sector has helped boost its bottom line.
Yangtze Electric Power Co Ltd, which runs the giant Three Gorges Dam hydropower project, fell 2.35 percent to 9.54 yuan.
Despite Tuesday's retreat, strong sentiment buoyed by repeated government pledges to revamp capital markets is seen as likely to keep the market on an up-trend in the medium term, analysts said.