Markets fall on banks' capital raising

SHANGHAI - Stocks on the Chinese mainland fell on Tuesday, driving down the benchmark index by the most in a week, on concern banks' fundraising will drain capital from existing shares and policy tightening measures may slow the economy.

SAIC Motor Corp and FAW Car Co slid 2 percent after Sinolink Securities Co said more local governments may introduce measures to limit car purchases to ease traffic congestion.

"Fundraising by banks will further drain liquidity from the market and lead investors to worry about the health of the banking industry," said Wei Wei, an analyst at West China Securities Co in Shanghai. "Policy tightening will be there for a while."