Chinese shares closed marginally lower Tuesday despite the news that regulators intend to allow listed firms to buy back their tradable shares.

The Composite Stock Index on the Shanghai Stock Exchange, which comprises yuan-denominated A shares and foreign-currency B shares, closed at 1,030.94 points on Tuesday, down 3.43 points from Monday 's close.

The Component Stock Index on the Shenzhen Stock Exchange closed at 2,709.48 points on Tuesday, down 19.72 points from Monday's close.

China Securities Regulatory Commission, said it started Monday to collect public opinions for the draft of a regulation allowing listed companies to buy back the public shares, according to a statement on the regulator's official website.

Analysts said the regulation will be helpful to activate the country's stagnant stock markets.

The Composite Stock Index on the Shanghai Stock Exchange dropped to an eight-year low of 998.23 points during the Monday's morning session.

Experts and market participants blamed the falling prices on the uncertainty arising from the ongoing experiment of selling non- tradable state-owned shares and the burst of share price bubbles.

Source: Xinhua