Mainland stocks slumped, driving the benchmark index down the most in six weeks, on concern the nation's property curbs and Europe's debt crisis will slow growth in the world's third-largest economy.
Hong Kong stocks closed down 477. 78 points, or 2.31 percent, at 20,248.90 points on Tuesday.
China's stock index futures closed down Tuesday with the contract for July, the most actively traded, down 5.03 percent from the previous trading day to end at 2,600.4 points.
The ChiNext Index, launched by the Shenzhen Stock Exchange (SSE) on June 1, slumped 7.54 percent, to close at 913.31 points in Tuesday's trading.
Chinese shares plummeted 4.27 percent to a 14-month low Tuesday, with the major gauge Shanghai Composite Index down 108.23 points to end at 2,427.05 points.
The Shanghai Composite Index fell below "key" technical support at 2,481, a "bearish signal" for China's stocks, according to Jamie Coutts, technical analyst at BGC Partners in Singapore.
China's small-company stocks plunged today, led by health-care and technology companies, on concern they are overvalued given the prospects for slower economic growth.
China's stocks slumped, driving the benchmark index down the most in six weeks, on concern the nation's property curbs and Europe's debt crisis will slow growth in the world's third-largest economy. China's small caps slide China stocks breach 'Key' technical support
China's exports face "strong headwinds" in the second half of the year from policy tightening measures and the European debt crisis, reducing prospects of a rebound in the stock market, Citigroup Inc said.
The central parity of the Renminbi (RMB), or China's currency yuan, weakened to 6.7901 per US dollar on Tuesday from Monday's 6.7890, according to the data released by the China Foreign Exchange Trading System.
Rubber advanced to a one-month high after data showed stockpiles in China declined to the lowest level in seven years, sparking optimism the biggest buyer may soon replenish inventories.