The relentless freefall in China's stock market continued on Tuesday, as The Shanghai Composite Index plunged 6.4 percent to end at 2,749.79, its lowest closing since December 2014. On other hand, the Shenzhen Component Index sank 7% to close at 9,483.55.

Both stock markets witnessed frenzy selling especially during closing hours, leading to sharp decline during remaining few hours of trading day.

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Tuesday's stock market crash happened even after China's Central Bank injected $15 Billion into the financial market.

Stock market analysts have noted that recent news of fraud in one of China's premium banks may have added to market woes, while some analysts argue that heavy capital outflow is very common before Chinese New Year holidays.

The prominent Chinese bank that was in the news for fraud recently is the Agricultural Bank of China. Two employees of the company are reported to be under investigation for breaching regulations and taking away 3.9 billion Yuan from the bank.

Meanwhile, elsewhere in Asia, Hong Kong's Hang Seng and Tokyo's Nikkei posted losses of around 2.5%, while India's BSE was closed due to a public holiday.

American stock markets too ended in red on Monday. The S&P 500 dipped 1.6%, while the Dow plunged 1.3%.

Most analysts blame the sliding prices of crude oil and China's struggling economy for the increasing volatility across stock markets in the world.

Some observers, however, insist that China's injection of $15 billion dollars into its financial market may have positive trickling effect in coming weeks and could eventually ease volatility across stock markets in the world.

Tagsshanghai stock market, Chinese Stock Market