Shanghai index suffers biggest daily loss this year

BEIJING — Chinese stocks closed lower Thursday, with the Shanghai index posting its biggest one-day percentage loss this year amid signs of tighter liquidity.

The benchmark Shanghai Composite Index closed down 2.29 percent, at 3,351.92, while the Shenzhen Component Index closed 3.33 percent lower at 11,175.47.

Combined turnover on the two bourses stood at 554.47 billion yuan ($84 billion) during the trading day.

Shares in electronic device and the food sector suffered the most, while iron ore and rare metals were among the biggest winners.

"It is a correction following a period of easy gains, instead of a turning point," said Li Daxiao with Yingda Securities.

Aiming to curb financial risks, the country's regulators released draft guidelines Friday that will unify rules covering asset management products issued by financial institutions.

The move reinforced analyst views that regulators will continue to tighten supervision in risky areas of the financial sector.

In the short term, tougher rules on bank wealth management products will curb money flows into the stock market from lenders, according to Shu Qiquan from Qianbofund.com.

The ChiNext Index, which tracks China's NASDAQ-style enterprises, lost 3.16 percent to close at 1,794.78.