China stocks close lower on weak heavyweights

Chinese shares closed lower on Monday as heavyweight stocks posted losses and investors remained cautious ahead of the release of the purchasing managers' index (PMI).

The benchmark Shanghai Composite Index lost 1.70 percent to finish at 2,289.87 points. The Shenzhen Component Index shed 1.88 percent to close at 7,895.87 points.

Total turnover on the two bourses expanded to 319.8 billion yuan (52.01 billion U.S. dollars) from 306.13 billion yuan the previous trading day.

The insurance sector posted losses, with the China Pacific Insurance (Group) Co., Ltd diving 3.84 percent. The banking sector was also lackluster, dragged down by major players including China Everbright Bank, Bank of Communications and China Merchants Bank.

Growth enterprises were hit hard, as a considerable amount of stock market funds were frozen due to the issuing of new stocks. The ChiNext Index, tracking China's Nasdaq-style board, lost 15.77 points, or 1.05 percent, to end at 1,483.35.

Analysts said that the market remained cautious ahead of the latest HSBC manufacturing PMI, scheduled to be released on Tuesday, after recent official data pointed to softening growth momentum in China.