Shanghai stocks close down 1.68%

China's benchmark Shanghai stock index closed down 1.68 percent on Tuesday, slashing losses from earlier in the day but still defying government efforts to improve sentiment after a plunge on Monday.

The Shanghai Composite Index fell 62.56 points to 3,663.00 on turnover of 685.1 billion yuan ($112.0 billion) after falling as much as 5.0 percent and rising up to 0.93 percent during the day. Its 8.48 percent plummet on Monday was the biggest single-day loss in eight years.

The Shenzhen Composite Index, which tracks stocks on China's second exchange, ended down 2.24 percent, or 48.39 points, to 2,111.70 on turnover of 618.8 billion yuan.