Chinese equities fell Wednesday, dragged by shares of steel makers after the government announced to scrap export tax rebates on a range of commodities, including various kinds of steel products.

The benchmark Shanghai Composite Index shed 0.73 percent, or 18.83 points, to end at 2,569.87. The Shenzhen Component Index fell 89.28 points, or 0.86 percent, to close at 10,256.27.

Aggregate turnover reached 124.71 billion yuan (18.31 billion U.S. dollars), down from 128.8 billion yuan on the previous trading day.

Losers outnumbered gainers by 593 to 274 in Shanghai and 552 to 396 in Shenzhen.

China's Ministry of Finance said Tuesday the State Council, the Cabinet, has approved scraping export tax rebates on 406 products, starting July 15.

Overnight losses on the Wall Street also weighed on market sentiment, analysts said