Shanghai shares slumped more than five percent in afternoon trade on Tuesday, as a two-day rally fuelled by stimulus talk came to an end despite a 440 billion yuan ($67 bn) liquidity injection by the central bank.

The benchmark Shanghai Composite Index tumbled 5.27 percent, or 154.96 points, to 2,783.55. The Shenzhen Composite Index, which tracks stocks on China's second exchange, plunged 6.13 percent, or 113.18 points, to 1,732.60.