Finance sector weighs down China stocks

China's key stock indices dipped Monday, dragged down by lackluster performance in the finance sector despite a strong recovery in coal mining.

The benchmark Shanghai Composite Index lost 0.36 percent to finish at 2,366.01 points. The Shenzhen Component Index dipped 0.58 percent to close at 8,164.07 points.

The finance sector posted an aggregate decline of 0.78 percent with drops sweeping almost all banks, brokers and insurers in Monday's trading. Pacific Securities led the decline with a 2.58-percent retreat.

Liquor makers and ceramics companies also suffered major declines.

The coal sector bucked the bearish trend and enjoyed substantial gains, mainly due to a resource tax reform that is expected to reduce financial burdens on coal miners.

China announced Saturday that the resource tax on coal will be levied based on sales rather than production from Dec. 1 and the "resource compensation fees" will also be ceded.

Ship builders and aircraft makers also saw major increases in their shares on the trading day.