Chinese stocks ended sharply lower on Wednesday following a 2-percent plunge of the Nikkei stock average earlier, and a sharp drop overnight in Wall Street.
The benchmark Shanghai Composite Index (SCI) struggled to stay above 2,000 points. The index slumped 1.24 percent, or 25.12 points, to finish at 2,004.17.
The Shenzhen Component Index tumbled 1.1 percent, or 90.87 points, to close at 8,193.37.
Combined turnover expanded slightly to 78.13 billion yuan (12.32 billion U.S. dollars) from 77.85 billion yuan the previous trading day.
Losers outnumbered gainers by 886 to 66 in Shanghai and by 1,419 to 93 in Shenzhen.
The SCI once dipped below 2,000 points during afternoon trading, marking the lowest reading in 43 months.
Analysts say new reviews, which are to be made after a break for nearly two months by China's securities regulator on two firms' IPO applications, dented market confidence. The central bank's record liquidity injection through reverse repurchase agreements on Tuesday also failed to boost the market.
Coal and finance stocks led the decline. China Shenhua Energy Company Ltd. fell 0.46 percent to 21.71 yuan per share. Anyuan Coal Industry Group Co. Ltd. slumped 2.43 percent to 13.65 yuan.
China Life fell 0.27 percent to 18.53 yuan. The Bank of China dipped 1.15 percent to 2.58 yuan.
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