Chinese stock market slumped as various concerns weighed the scrips down. In Tuesday's trading session, the stocks failed to recover despite encouraging industrial and retail sales data. The stock markets are also subdued over concerns about upcoming Fed meeting, which is likely to result in hike in interest rates.

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The stock markets remained rocky in the previous week as well. Property stocks showed significant drop as the fears about real estate collapse grow larger. China is also looking to clamp down speculative activities in the market.

The regulators are looking to scrutinize stock purchases carried out by insurance firms. However, the talks of such measures made shares in the Chinese markets to decline sharply. The regulators imposed a ban on insurer Evergrande Life from making any further investments in stocks.

The authorities claimed that the insurer had been conducting short-term trading on the stock market. It is believed that investors were not expecting such sudden steps to curtail stake building by insurers. Li Zheming, an analyst at Datong Securities in Dalian, told Reuters, "Bad news piled up for the time being, as regulators are reining in their control on insurers."

Concerns about the upcoming Fed meeting is also keeping Asian stocks in check. It is likely that the Fed may announce increase in interest rates, which will make emerging markets less attractive. If Fed moved ahead, then this would be the first of such rate hike this year.

Pursuant to declining stock market, China benchmark 10-year treasury yields touched its 13-month high. The yield on China's one-year sovereign bonds gained 15 basis points to touch 2.65 percent, while the 10-year yield increased 9 basis points to 3.19 percent.

Tagschina, stock market, Fed