Stocks tumble, Shanghai index down 2%

An investor looks through stock information at a brokerage house in Fuyang city, east China's Anhui province, Sept 29, 2015. [Photo/IC]

Stocks slid on Tuesday, with the benchmark Shanghai index down 2 percent amid diminishing turnover.

The Shanghai Composite Index closed at 3,038.14, down 62.62, while the Shenzhen Component Index retreated 1.6 percent or 165.63 points to 9,949.92.

Transportation equipment manufacturers led the losses, as AVIC Aero-Engine Controls Co and China State Shipbuilding Corp edged down more than 4 percent.

A total of 420.9 billion yuan ($66.1 billion) worth of stocks changed hands at the two markets.

As of Monday, the outstanding balance of margin debts dropped for a fourth day to 578.14 billion yuan, data from the Shanghai bourse showed.

The slump coincided with the performance of emerging markets, with the later plunging toward the lowest level in six years. According to Bloomberg, concerns grew that China's slowdown will deepen a rout in commodities.

Renminbi rallied to a seven-week high in Hong Kong's offshore market, with the overnight borrowing rate jumping by a record on signs that China's central bank was intervening to support the exchange rate, said the agency.

The CSI 300 Index closed at 3,178.85, down 2 percent or 63.90 points.