Stock markets in Shanghai and Shenzhen weakened Monday in response to renewed headwinds out of Europe.
The key Shanghai Composite Index closed at 2,240.02 after diving 38.38 points, or 1.68 percent; while the Shenzhen Component Index shaved off 100.27 points, or 1.1 percent, to finish at 8,999.02.
Both indices opened lower and contracted throughout most of the day as automobile, financial and liquor shares took the brunt of the day's losses.
According to analysts, market confidence took a turn for the worse Monday after reports surfaced that eurozone officials would levy a tax on bank deposits in Cyprus to fund the island's financial bailout. Concerns about the political and economic repercussions of such a move crimped stocks across Asia Monday as investors took a more skeptical look at financial conditions in Europe.
The automobile sector recorded some of the day's biggest tumbles after CCTV's annual investigative report broadcast Friday showed Anhui Jianghuai Automobile Co using rusty steel to produce bodies for its vehicles.
The company was suspended from trading Monday and analysts estimate that it would cost Anhui Jianghuai Automobile Co 200 million yuan ($32.17 million) to recall its defective vehicles.
The reports put a dent in several other listed car makers, including SAIC Motor Corp, which fell 2.59 percent to 14.66 yuan.
Alcoholic beverage makers took a dive as well after new Chinese Premier Li Keqiang said Sunday that the government would continue to focus on cutting spending on extravagances.
Wuliangye dropped 4.54 percent to 22.91 yuan, its lowest close in 30 months. Kweichow Moutai Co also shed 4.25 percent to 169.45 yuan.
Meanwhile, environmental protection shares took a winning turn again after Wang Yawei, a well-known fund manager, told local media that the sector held some of the mainland markets' best investment values. Chengdu Xingrong Investment Co surged past the daily 10-percent limit to 10.25 yuan.
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