The Shanghai Composite index ended the day down 187.65 points, or 6.4%, at 2,741.25 as concerns persisted over China’s slowing economy.
The Chinese shares have fallen by about a half since June 2015, but have enjoyed a modest rally in recent weeks.
Analysts suggested today’s sharp fall was partly down to investors taking profits.
Investors are also said to be cautious ahead of a G20 meeting in Shanghai.
The sell-off in China also affected Hong Kong, with the Hang Seng index closing down 1.6% at 18,888.75.
In Japan, shares in Sharp tumbled following news that the struggling electronics giant had accepted a takeover offer from Taiwan’s Foxconn.
Trading was suspended ahead of the announcement, and when it restarted the shares closed down 15% at 149 yen.
Overall, the Nikkei index rose 1.4% to close at 16,140.34, while the broader Topix index rose 1.79% to 1,307.54.
In Australia, the benchmark ASX 200 index ended the day 0.1% higher at 4,881.18.
Shares in Australia’s biggest casino company, Crown Resorts, fell heavily after it reported a slump in half-year profits, dented by a sharp slowdown at its Chinese operations.
Crown Resorts’ Sydney-listed shares tumbled more than 9% on the profit report, but recovered some of that loss to trade about 4.5% lower in afternoon trade.
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