Chinese equities continued to drop for a second day in a row Wednesday as investors feared prospects of higher interest rates and inflation control policies would hurt earnings.

The benchmark Shanghai Composite Index shed 1.92 percent, or 55.68 points, to close at 2,838.86.

The Shenzhen Component Index dropped 2.45 percent, or 299.78 points, to end at 11,917.49.

Combined turnover shrank to 288.4 billion yuan from 398.13 billion yuan the previous trading day.