Shanghai Composite Index has fallen 0.7 per cent or 14.71 points to the level of 2015.61 as investors continued to be doubtful over the scope of economic recovery in the world's second largest economy.

The fall comes even after latest figures from the country indicated that the domestic manufacturing activity in the country improved during November. Investors are concerned over the continued uncertainty in the global economy and pressure on the Chinese economy due to weak demand from the international markets for its products.

The Shenzhen Composite Index also recorded a fall of 1.2 per cent or 9.45 points, to 798.55. Market analysts said that the stock markets are likely continue to fall in the coming weeks due to a general year end liquidity fall and lack of clarity over the direction to be taken by the new leadership in China.

China's manufacturing recorded its first rise in 13 months indicating a recovery trend in the Chinese economy following its prolonged slowdown after the 2008 global financial crisis. The HSBC monthly Purchasing Managers' Index improved to 50.4 for November. A PMI of more than 50 indicates expansion and less than 50 indicates contraction.