China's benchmark Shanghai Composite Index plunged 5.42 percent Thursday, the biggest one day loss in two months, led by huge sell-off in No.1 index component PetroChina.

The key index closed 195.36 points lower at 3,411.49, the lowest close since April 9 last year, after trading between 3,541.28 and 3,407.90. It has fallen 35 percent this year and 44 percent from its record high on October 16.

The Shenzhen Component Index fell 377.68 points, or 2.80 percent, to 13,111.41.

Losing shares outnumbered gainer by 803 to 44 in Shanghai and by 635 to 40 in Shenzhen. Aggregate turnover rose slightly to 112.02 billion yuan ($15.96 billion) from Wednesday's 104.69 billion yuan.