Liu said the country still faces big inflation pressure, re-igniting worries that the central bank might take action soon to tackle the rising cost of living.

The March figure will be released this week, together with data on industrial output and fixed investment. Investors m ay choose to move to the sidelines when awaiting the figures.

Adding to the selling pressure was talks of new regulatory plans to tighten the rein on the purchase of houses for investment purposes, sparking a fresh wave of selling in real estate shares. Eighty percent of the housing shares fell more than 8 percent, with more than 20 dropping their 10 percent daily limit.

Buyers of non-first apartments have been required to pay a higher down payment and interest rates.

Other shares fared hardly better. Less than 100 stocks among the 1,500 ones in the Shanghai and Shenzhen markets posted gains.

Financial shares remained weak. The Industrial and Commercial Bank of China fell 5.22 percent to 5.81 yuan per share, while China Life dropped 7.37 percent to 27.76 yuan.

AUTHOR：Dong Zhixin