Chinese stocks closed lower Thursday, dragged down by liquidity concerns.

The benchmark Shanghai Composite Index went down 0.97 percent to close at 3,446.98 points.

The Shenzhen Component Index closed 2.65 percent lower at 10,864.34 points.

The ChiNext Index, tracking China's NASDAQ-style board of growth enterprises, lost 2.17 percent to end at 1,697.39 points.

Combined turnover on the two bourses stood at 567 billion yuan (90 billion U.S. dollars), up from 494 billion yuan on the previous trading day.

More than 250 stocks slumped by their daily limits of 10 percent, with bike sharing leading the decline.

Bucking the trend, steel makers gained across the bourses. Liuzhou Iron and Steel Co., Ltd. rose 3.27 percent to 7.58 yuan. Baoshan Iron and Steel Co. Ltd. increased 3 percent to 10.28 yuan.