An interim trade agreement between the United States and China might not be completed in time for signing in Chile next month as expected but that does not mean the accord is falling apart, a US administration official said on Tuesday.
Despite the trade concerns, foreign money continued to flow into the A-share market via the Stock Connect linking Hong Kong and the mainland as Beijing vowed more opening-up. China will eliminate all restrictions on foreign investments not included in its self-styled "negative lists", a vice commerce minister said on Tuesday, and also will "neither explicitly nor implicitly" force foreign investors and companies to transfer technologies.
Technology transfers have been a major source of tension between China and the United States as both countries have been embroiled in a trade war for over a year.
Investors were also watching corporate profits as the third-quarter earnings season will soon conclude.
Consumer firms fell the most on the mainland, led by electric car maker BYD slumping 6.8% on bleak profit and outlook.
The A-share market is cheap compared with other types of yuan-denominated assets, but would stay quiet within the rest of the year, as the decisive policy and economic factors for a bull rally are yet to emerge, Shengang Securities noted in report.
Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.29%, while Japan's Nikkei index closed down 0.57%.
At 0707 GMT, the yuan was quoted at 7.0606 per US dollar, 0.07% firmer than the previous close of 7.0656.
About 15.88 billion shares were traded on the Shanghai exchange, roughly 97.6% of the market's 30-day moving average of 16.26 billion shares a day. The volume in the previous trading session was 16.61 billion.
As of 0707 GMT, China's A-shares were trading at a premium of 29.97% over the Hong Kong-listed H-shares.