Slowing economic growth and increasing market uncertainties have led to a drop in investor confidence in Shanghai, a report released on Tuesday said.

The report, by the Shanghai University of Finance and Economics, said investor confidence in the second quarter dropped about 10 percent and some 6 percent year-on-year.

The general sentiment turned from optimistic to pessimistic, the report said.

"Lower satisfaction of investment yields in the second quarter and lower expectation of yields in near future have affected investor confidence in Shanghai," the report said.

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