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Shanghai earlier launched a massive campaign dubbed "May 5 Shopping Festival", as merchants gave shopping coupons to spur online and offline spending.

Shanghai's 200 sub-districts were restructured, Xu said, with work centering on public service, management and safety.

Shanghai Electric Group Co Ltd, another rumored partner, also denied negotiations over a possible partnership with Tesla on Friday. Lingang's shares plummeted to their daily limit on Friday and Shanghai Electric shares halted trading.

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Several Chinese companies have been facing rough weather in the US, with their acquisition plans stranded due to "national security concerns". The list includes Ant Financial's proposed purchase of US money transfer company MoneyGram International and Chinese semiconductor companies' plans to buy US counterparts.

Shares of eBay jumped more than six percent on Tuesday as the online retailer and marketplace?announced plans to spin off its PayPal payments business in 2015, a plan that was originally proposed by activist investor Carl Icahn earlier this year. When the deal is completed sometime next year, eBay president and CEO John Donahoe will step down, replaced by eBay Marketplaces president Devin Wenig. Former Amercican Express executive Dan Schulman will join PayPal as president and CEO after the separation.

Shares related to medicine led the losses.

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Shanghai will launch a shopping gala that spans the second quarter with all the major ecommerce platforms, commercial enterprises, brands and projects participating.

Shares of oil majors Chevron and Exxon Mobil dropped 3.4 percent and 2.7 percent, respectively.

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Several packages containing pipe bombs packed with shards of glass have been intercepted in the last few days. They targeted Hillary Clinton, former President Barack Obama, CNN and others.

Shanghai and Beijing saw per-capita disposable income cross 40,000 yuan (,700) in the first three quarters, according to data released by National Bureau of Statistics recently.