The blue-chip CSI300 index ended 1.0% lower at 5,088.26, while the Shanghai Composite Index declined 0.8% to 3,525.50.

While the cabinet said China would keep monetary policy stable, investors took talk of cuts in RRR - the mandatory reserves that banks have...

Red-chip stocks are those incorporated outside mainland China but listed on Chinese bourses.

At the close, the Shanghai Composite index was up 0.12 per cent at 2,939.32, while the blue-chip CSI300 index was up 0.67 per cent.

As a rout in this year erased $5 trillion of value, investors fled for safety in the nation’s red-hot corporate bond market.