China stocks

China shares drop, with Shanghai Composite tumbling more than 6%

Chinese shares tumbled Thursday amid tighter liquidity, but other markets in Asia settled higher.

The Shanghai Composite tumbled to end down 187.47 points, or 6.4 percent, at 2,741.41 to around a three-week low, while the Shenzhen composite dropped 137.80 points, or 7.34 percent, to 1,738.66.

“Liquidity is tightening again in the market, and global negative tone feeding through leading to profit taking in small caps,” Michael Every, head of financial markets research for Asia Pacific at Rabobank, told CNBC by email about the sell-off on the Chinese mainland.

Transportation and financials plays were some of the biggest losers on the main index, with shares of China Shipbuilding closing down 10.01 percent.

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