Chinese stocks closed lower Wednesday as falling market heavyweights overshadowed a rise in new energy vehicle shares.

The benchmark Shanghai Composite Index went down 0.92 percent to 3,275.78, while the Shenzhen Component Index closed 1 percent lower at 10,911.21.

Combined turnover on the two bourses stood at around 410.1 billion yuan (62.57 billion U.S. dollars), up from 364.5 billion yuan the previous day.

The ChiNext Index, which tracks China's NASDAQ-style enterprises, lost 0.77 percent to close at 1,745.24.

Financial heavyweights, including banks, brokerages and insurers, dragged down the market. Ping An Insurance declined 4.86 percent to 70.35 yuan, while China Merchants Bank was down 3.2 percent to 28.76 yuan.

Shares in liquor and home appliances were also weak. Kweichow Moutai, China's leading liquor company, lost 2.44 percent to 664.18 yuan.

Shares related to new energy vehicles soared in the afternoon session after Chinese authorities announced that they would continue to exempt purchase taxes for new-energy vehicles for another three years from 2018.

Anhui Ankai Automobile, a producer of new energy coaches, surged by the daily limit of 10 percent to 8.02 yuan. FAW Car, a branch of state-owned FAW Group, climbed 3.43 percent to 10.55 yuan.