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%.