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Chinese equities dropped dived 1.06 percent Tuesday, led by declining financial stocks.

The benchmark Shanghai Composite Index went down 1.06 percent, or 35.24 points, to close at 3,296.66.

Combined turnover shrank to 275.4 billion yuan ($40.32 billion) from 277.3 billion yuan on the previous trading day.

Losers outnumbered gainers by 561 to 311 in Shanghai and 418 to 382 in Shenzhen.