The Shanghai Composite shed 0.26% to close at 3,307 while the Shenzhen Component lost 0.51% to 12,424 on Tuesday, consolidating recent gains following a strong rally that saw mainland shares outperform their global peers in the past two months. Those gains were driven by expectations that China’s policy will turn more accommodative to help support the country’s economic recovery from pandemic lockdowns. However, China’s central bank paused its policy easing and left its benchmark lending rates unchanged on Monday to avoid further divergence in monetary policy against other economies, but analysts expect more stimulus in the remainder of this year. This prompted investors to book some profits as they await clarity on future policy moves. Sharp losses were seen from growth stocks including China Northern Rare Earth (-8.3%), Tianqi Lithium (-2.9%) and Sungrow Power (-5.7%).