BEIJING, June 19 -- Chinese shares fell for a third consecutive day on Thursday as new share listings diverted funds.

The benchmark Shanghai Composite Index dropped 1.55 percent, or 31.78 points, to finish at 2,023.73. The Shenzhen Component Index fell 1.60 percent, or 117.08 points, to close at 7,180.32.

Combined turnover on the Shanghai and Shenzhen bourses expanded slightly to 176.50 billion yuan (28.68 billion U.S. dollars) from 168.58 billion yuan the previous trading day.

Four companies started taking initial public offering subscriptions on Wednesday. These companies are selling their new shares at relatively low price-earnings ratios, which locks up a sizable amount of capital.

Property shares were once again weak after latest official data for May showed a continued cooling trend in the housing sector, leading to uncertainty in the Chinese economy.

RiseSun Real Estate Development plunged by 6.22 percent to 9.50 yuan per share. China Real Estate Corporation slumped 3.62 percent to 6.12 yuan per share.

The ChiNext Index, tracking China's NASDAQ-style board of growth enterprises, fell 3.18 percent to end at 1,320.65 points.