In Shanghai, share prices closed 1.54 percent lower, extending losses on liquidity concerns with oil refiners and automakers dragged down after several firms issued profit warnings.
Dealers said sentiment was hit by fresh speculation that regulators will soon resume initial public offers (IPO) after earlier vague reports that the authorities planned to speed up the disposal of state-owned, non-tradable shares in listed companies.
The Shanghai A-share Index lost 17.83 points to 1,136.27 on turnover of 7.96 billion yuan (US$981.50 million) while the Shenzhen A-share Index was down 6.39 points or 2.28 percent at 273.66 on turnover of 4.51 billion yuan.
The benchmark Shanghai Composite Index, which covers both A- and B-shares, shed 16.92 points or 1.54 percent at 1,080.87 on turnover of 8.02 billion yuan.
Dealers said rumors of a possible resumption of IPOs in the near future further increased liquidity concerns.
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