Chinese equities slid more than 1 percent Thursday, dragged down by banks and property developers.
The benchmark Shanghai Composite Index on the Shanghai Stock Exchange ended at 2,999.48 points, down 33.8 points, or 1.11 percent.
The Shenzhen Component Index dropped 0.53 percent, or 62.86 points, to close at 11,703.96 points.
Total turnover expanded to 279.83 billion yuan (40.97 billion U.S. dollars) from 271.39 billion yuan the previous trading day.
Losers outnumbered gainers by 485 to 376 in Shanghai, while gainers outnumbered losers by 497 to 385 in Shenzhen.
Concerns about the real estate market and a tightening in credit weighed after media reports said China's banking regulator has adopted stricter rules for the identification of a "second home" in assessing home loan applications.