China posts biggest daily loss in 6 months

Hong Kong - China shares had their worst day in more than six months on Tuesday, as investors continued to fret about weak economic data and started to worry about liquidity as a new batch of initial public offerings loomed.

Foreign direct investment in China in August fell to a low not seen in at least 2½ years, the Commerce Ministry said on Tuesday, underscoring the growth challenges facing the world's second-biggest economy.

The Shanghai Composite Index ended down 1.8% to 2 297 points. The CSI300 of the leading Shanghai and Shenzhen A-share listings shed 2.0% to a two-week low.

Tuesday brought the biggest percentage-drops for both indexes since March 10.

Recent outperformers were among Tuesday's largest drags. SAIC Motor Corp, which last week hit its highest since February 2013, sank 4.6%. China Shipbuilding Industry dived 5.3% from this year's closing high.

Agricultural Bank of China advanced 0.8% after the major lender said late on Monday it received regulatory approval to issue preference shares.