Beijing  - China's main stock market index plunged by nearly 3 per cent Tuesday despite an Asian regional rally spurred by bank bail-out deals.

The key Shanghai Composite Index, which tracks shares traded in local and foreign currencies on the larger of the mainland exchanges, lost 2.71 per cent to end the day at 2,017.32, down 56.25 points.

The smaller Shenzhen Component Index also lost nearly 2 per cent of its value after both markets made initial gains in the morning session.

Only 217 shares traded on Tuesday rose, with 1,373 falling and 120 unchanged, state media said.

The official Xinhua news agency quoted analysts as saying the relatively poor recent performance of Chinese stocks compared with global markets had "greatly damaged investor confidence."

Blue-chip shares were pulled down after a morning jump in stock prices as investors sold shares to lock in recent gains and on renewed worries about the global financial crisis. (dpa)