China reports its shares to drop to their lowest level in nearly three months Tuesday, weighed by unabated concerns about the impact lending curbs may have on market liquidity, resulting in the implementation of a systemized increase in required reserves for some banks.

The benchmark Shanghai Composite Index, which tracks both A and B shares, fell 2.4%, or 75.02 points, to 3019.39, its lowest level since it ended at 2995.85 on Oct. 30, while the Shenzhen Composite Index fell 3.1%, or 36.08 points, to 1112.41.

China's strives to tighten liquidity and rein in bank lending, with an aim to soaring price pressures and asset prices, have haunted investors around the globe who worry the global recovery may lose pace as authorities withdraws back from emergency stimulus policies put in place to combat the global recession.

"The concerns about credit tightening are weighing on investor sentiment, but the drop in the index today is larger than what we had expected", said Amy Lin, an analyst from Capital Securities.

Analysts claim the Shanghai index is likely to fetch backing at 3,000 in the coming sessions, as concerns Beijing may implement further steps to end lending growth are likely to weigh on demand.

On Friday, Industrial & Commercial Bank of China Ltd. had initiated an order to its Beijing branches preventing them to issue any new loans for the rest of January.