Chinese stocks closed lower Monday, dragged down by the environmental protection and oil sectors.

The benchmark Shanghai Composite Index fell 0.35 percent to close at 3,378.8. The Shenzhen Component Index closed 1.12 percent lower at 11,271.2.

The ChiNext Index, China's NASDAQ-style board, lost 2.25 percent to close at 1,882.69.

Combined turnover on the two bourses stood at 545.9 billion yuan (83billion U.S. dollars), up from 458.6 billion yuan the previous trading day.

Sectors including environmental protection and oil led the declines with their sub-indices dropping 2.4 percent and 2.38 percent respectively.

Investors were cautious despite China released upbeat producer price inflation (PPI) figures Monday. The PPI unexpectedly accelerated to a six-month high in September.

The PPI, which measures the cost of goods at the factory gate, was up by a forecast-beating 6.9 percent year on year in September, according to the National Bureau of Statistics.

For January-September, the PPI climbed 6.5 percent year on year, an encouraging sign in an economy seeking to renew growth momentum amid lingering downward pressures.