Beijing - Shares on China's main stock market lost nearly 3 per cent Tuesday, with another selloff extending recent declines.

The key Shanghai Composite Index, which tracks shares traded in both local and foreign currencies, lost 79.35 points to end at 2,794.75, down 2.76 per cent.

The smaller Shenzhen Component Index lost more than 4 per cent of its value on Tuesday.

The decline was led by shares in securities and property developers, with financial, petrochemical, mining and transportation stocks also falling.

The Shanghai Daily newspaper said concerns about the economy had "escalated into a loss of confidence in the stock market."

Tuesday's close marked a 15-month low for Chinese share prices, which many analysts had long warned were inflated. (dpa)