Shanghai stocks closed down 7.63 percent on Tuesday, as concerns about China's weak economy pressured shares the day after their worst daily fall since 2007 sparked panic selling around the world.

China's benchmark Shanghai Composite Index dropped 244.94 points, to 2,964.97 on turnover of 358.7 billion yuan ($56.1 billion). It fell as much as 8.16 percent during the day.

The Shenzhen Composite Index, which tracks stocks on China's second exchange, slumped 7.09 percent, or 133.39 points, to 1,749.07 on turnover of 288.0 billion yuan.