China stocks close lower Wednesday

Chinese shares dropped more than one percent on Wednesday, weighed down by an overnight tumble in the U.S. market and lingering uncertainties in the Chinese economy.

The benchmark Shanghai Composite Index went down 1.23 percent to finish at 2,038.61 points. The Shenzhen Component Index lost 2.25 percent to close at 7,192.71 points.

Combined turnover of the two bourses stood at 246.31 billion yuan (about 40 billion U.S. dollars).

The ChiNext Index, a NASDAQ-style board for growth enterprises, dropped by 26.15 points, or 1.85 percent, to end at 1,384.58 points.

Government data released on Wednesday showed China's consumer price index, a main gauge of inflation, softened to 2.3-percent year-on-year growth in June.

Investors were trading cautiously as more data are expected in the coming days, with trade figures due on Thursday and the April-June economic growth data due next week.

The property and bank counters were weak on Wednesday.

Poly Real Estate, a major property developer, dropped nearly 2 percent to 5.05 yuan. RiseSun Real Estate Development plunged 3.39 percent to 9.41 yuan.

Bank shares extended losses with Ping An Bank down 2.82 percent. China CITIC Bank closed 2.30 percent lower and Bank of Beijing dropped 2.06 percent.