Shanghai's key stock index dropped in the morning session with slim turnover as investors unwilling to trade ahead of the 8-day break of the market.

The benchmark Shanghai Composite Index was down 0.91 percent, or 25.18 points, to close at 2,738.34 points. Turnover was 35 billion yuan (US$5.1 billion), almost only half of that in normal trading days. Losers outnumbered gainers 797 to 73, and 40 shares remained unchanged.

The Shenzhen Composite Index, which tracks the smaller domestic market, .lowered 1.88 percent to close at 933.38 points.

"The slim turnover suggested traders are not eager to go into the market and the index may remain in fluctuation in the coming day," GF Securities wrote in a research report.

China Petroleum & Chemical Corp, Asia's largest refiner and also known as Sinopec, edged up 0.36 percent to 11.25 yuan. PetroChina, the most heavily-weighted share in the market, dipped 0.4 percent to 12.57 yuan.

Shanghai Pudong Development Bank edged up 0.94 percent to 19.28 yuan. China Industrial Bank advanced 2.56 percent to close at 32.79 yuan. Bank of Communications was up 0.12 percent to 8.2 yuan.

A report from China Agricultural Bank suggested new loans in September may climb over 600 billion yuan, nearly double that of 320 billion yuan in August.

Steel producers were among the losers. Baoshan Iron & Steel Co Ltd lost 2.32 percent to 6.31 yuan. Wuhan Iron & Steel retreated 3.54 percent to 6.81 yuan. Maanshan Iron & Steel Ltd Co dropped 2.86 percent to 4.08 yuan.

Other metal producers were also weak. Zijin Mining Co lowered 0.48 percent to 8.29 yuan. Jiangxi Copper Co was down 1.15 percent to 32.68 yuan. Yunnan Copper Co retreated 2.09 to 24.31 yuan. Metallurgical Corp of China dipped 0.71 percent to 5.56 yuan. Aluminium Corp of China lowered 1.29 percent to 12.23 yuan.