China Shares Fall as Resources Firms Take Beating

China stocks dropped on Thursday, led by resource shares, as commodity prices fell in response to fresh regulatory trading curbs, hitting already fragile investor confidence.

The CSI300 index fell 0.2 percent, to 3,160.58 points at the close of trade, while the Shanghai Composite Index lost 0.3 percent, to 2,946.20 points.

Reflecting weak market confidence, Shanghai's trading turnover stayed near four-month lows, while outstanding margin loans - money investors borrow to buy stocks - have shrunk for six sessions in a row.

Most sectors fell.

An index tracking raw material stocks fell 1 percent, as many commodity prices continued to fall after the Dalian Commodity Exchange took further steps to calm volatile futures markets on Wednesday.

(Reporting by Samuel Shen and Nathaniel Taplin; Editing by Shri Navaratnam)