Chinese equities closed lower on Tuesday, weighed down by fresh economic data that painted a challenging picture of the country's economy.

The Shanghai Composite Index, the main gauge of Chinese stocks, declined 0.5% to 3,864.28. The Shenzhen Component Index fell 0.7% to 13,287.97.

Property investments in China fell 19.9% year over year during the first eight months of the year, according to data released Tuesday. The decline accelerated from the 19.2% drop recorded in the seven months ended July.

Retail sales of consumer goods grew 0.4% year over year to 3.982 trillion yuan in August. The pace of growth was softer than the 0.6% expansion recorded in the previous month and fell short of the consensus forecast of 0.7% growth tracked by Investing.com.

Separately, China's outstanding yuan loans grew 4.9% year over year to 282.35 trillion yuan as of the end of August. The growth rate slowed from July's 5.1% expansion to a record low, falling short of the 5.1% increase forecast by Investing.com.

In company news, Contemporary Amperex Technology (SHE:300750) or CATL obtained the approval of China's State Administration for Market Regulation to acquire an undisclosed stake in Chongqing Yaoning New Energy Technology. Shares of the battery maker closed 6% lower Tuesday.