China Hushen 300 index futures drop Tuesday

China's key Hushen 300 index futures dropped on Tuesday, with the contract for August, the most actively traded, down 2.81 percent to close at 3,654 points.

The September contract fell 2.76 percent to close at 3,598.8 points. The December contract shrank 2.41 percent to close at 3565 points. The March 2016 contract retreated 1.28 percent to 3,607.4 points.

The stock-index contracts, agreements to buy or sell the Hushen 300 Index at a preset value on an agreed date, are designed to allow investors to bet on and profit from either gains or declines in the market.

The index futures was launched at the China Financial Futures Exchange (CFFEX) and started trading from April 16, 2010. The CFFEX has set the base value for all the four contracts at 3,399 points.