Chinese shares closed more than three percent on midday Tuesday as investors feared the central bank would raise interest rates over this weekend to cool excessive liquidity.

The benchmark Shanghai Composite Index tumbled 3.05 percent, or 87.49 points, to 2,778.87 in the morning session.

The Shenzhen Component Index lost 3.66 percent, or 459.14 points, to close the morning session at 12,077.41.