SHANGHAI: China stocks closed lower on Thursday, led by metaverse-related shares as the state media flagged risks, while real estate developers fell amid liquidity woes.
The blue-chip CSI300 index fell 1.0%, to 4,837.62, while the Shanghai Composite Index lost 0.5% to 3,520.71 points.
Media companies lost 2.7%, led by metaverse-related stocks, after state media People's Daily published an article telling people to think rationally on metaverse.
Real estate developers declined 2.1% amid concerns over liquidity woes in the sector.
China Evergrande Group said it is selling its entire stake in HengTen Network Holdings for HK$2.13 billion ($273.5 million), while Country Garden Services raised HK$8 billion ($1 billion) from the sale of 150 million new shares.
Information technology shares and healthcare firms fell more than 1.7% each.
Lithium stocks extended gains from the previous session, with Tibet Summit Resources Co, Chengxin Lithium Group and Tianqi Lithium Corp up between 5% and 10%.
China's Ministry of Industry and Information Technology (MIIT) said the country will guide lithium battery makers to enhance technological innovation and improve products quality.
Coal shares gained 1.1%. China will establish a special relending facility worth 200 billion yuan ($31.35 billion) to support the clean use of coal, state broadcaster CCTV said on Wednesday.