Beijing - Shares on China's two stock markets lost about 3 per cent of their value on Tuesday, as analysts blamed record oil prices and news of slowing growth in manufacturing.

The key Shanghai Composite Index, which tracks shares traded in local and foreign currency, dropped 84.50 points, 3.09 per cent, to close at 2,651.61.

The new fall means that the Shanghai index has lost about 48 per cent of its value since the start of this year, although analysts had long warned that many Chinese stocks were significantly over-valued.

The smaller Shenzhen Component Index also fell by 2.92 per cent on Tuesday.

Shares in China's largest oil refiner, state-run Sinopec, plunged by more than 4 per cent on the back of higher crude oil prices, which rose to a record 143.67 dollars a barrel in New York on Monday.

Large falls over the last two weeks have continued a period of strong daily fluctuations amid an overall downward trend in China's inflated share prices, with analysts expecting more volatility. (dpa)