The vice chairman of the China Securities Regulatory Commission reportedly told brokerage executives at a meeting on Tuesday that it is "almost certain" that listings will resume at the end of July. Regulators halted IPOs in late October in a move to clean up corruption in the stock market.
(Read More: Awaiting China PMI: Things Could Get Even Worse)
Earlier in the session, the benchmark index fell below the 2,126 mark to hit a fresh low for this year.
Meanwhile, property developers extended losses after data on Tuesday showed prices grew at the fastest pace in May this year. Increasing prices makes it difficult for policymakers to loosen monetary policy in a bid to boost growth.
China Vanke skidded over 2 percent, Poly Real Estate fell 2 percent and China Merchants Property lost 1.3 percent.
Australia Climbs 1%
A weak Australian dollar underpinned gains in Sydney's benchmark index, helping the index cross the 4,830 mark to trade at its highest levels in two weeks.
The currency fell below the $.095 handle against the greenback, benefiting stocks with overseas exposure like major miners. Mirabela Nickel climbed 8 percent while coal company White Energy surged 22 percent.
(Read More: What Bust? Australia Set for Huge Boom, Report Says)
Whitehaven Coal pared gains to add 4.3 percent following an earlier 8 percent rally after Australian tycoon Nathan Tinkler sold nearly half his stake.
Shares of casino operator Echo Entertainment added 2 percent after Malaysian firm Genting increased its stake in the firm overnight. The move comes weeks after rival casino company Crown sold its stake in Echo.
Kospi Below 1,900
Blue-chip stocks weighed on South Korea's benchmark index. Both Samsung Electronics and LG Electronics both fell over 1 percent to give up the previous day's strong gains.
— By CNBC.com's Nyshka Chandran. Follow her on Twitter @NyshkaCNBC