BEIJING, Jan. 16 (Xinhua) -- Chinese shares saw their sharpest decline in nearly eight weeks on Wednesday, losing about 3 percent in reaction to heavy losses on Wall Street and deepening concern over a U.S. recession. The benchmark Shanghai Composite Index, which covers A and B shares, tumbled 153.19 points, or 2.81 percent, to 5,290.61. It traded between 5,288.77 and 5,396.04. The Shenzhen Component Index, which covers the smaller Shenzhen Stock Exchange, fared even worse, sinking 682.03 points, or 3.58 percent, to 18,351.99. Losses led gains by 592 to 238 in Shanghai and 436 to 211 in Shenzhen. Combined turnover rose to 247.4 billion yuan (34.2 billion U.S. dollars) from 231.6 billion yuan in the previous session. Chinese stocks also echoed heavy falls in Hong Kong and Tokyo. Hong Kong's benchmark Hang Seng Index plunged 5.37 percent to 24,450.85 and Tokyo's Nikkei 225 index tumbled 3.35 percent to 13,504.51. Sell-offs on world markets have brought psychological pressure to bear on A shares and the share prices may continue to fall in the short term as the pressure dampened investors' enthusiasm, said Bohai Investment. Overnight, the Dow Jones Industrial Average slid 2.17 percent to 12,501.11, as Citigroup's record fourth-quarter loss and lower U.S. retail sales added to U.S. recession fears. Citigroup, the largest U.S. bank, reported a fourth-quarter net loss of 9.83 billion U.S. dollars after writing down 18.1 billion U.S. dollars in sub-prime mortgages. There was also news that U.S. retail sales fell 0.4 percent in December, the first decline in six months. Weaker consumer spending in the U.S., China's second-largest trading partner, could slow exports and economic growth in the world's fastest-growing major economy, said analysts. Banks and property fell furthest on concern that further tightening measures in China could cloud their earnings prospects, according to Bohai Investment. Mid-sized bank Industrial Bank plunged 8.48 percent to 53.50 and Shanghai Pudong Development Bank tumbled 5.61 percent to 55.82 yuan. Heavyweights Industrial and Commercial Bank of China fell 2.57 percent to 7.91 yuan and Bank of China dropped 2.66 percent to 6.59 yuan.&nb