Chinese stocks closed lower Tuesday amid tightened liquidity ahead of the Spring Festival.

The benchmark Shanghai Composite Index dropped 0.68 percent, or 18.29 points, to 2,677.43 points.

The Shenzhen Component Index dropped 0.37 percent, or 42.55 points, to11,446.37 points.

Combined turnover shrank to 129.3 billion yuan (18.79 billion U.S. dollars) from 160.9 billion yuan the previous trading day.

Losers outnumbered gainers 631 to 251 in Shanghai and 840 to 314 in Shenzhen.

Liquidity will be tight ahead of the Spring Festival, which falls on Feb. 3 this year, Zhongzheng Investment Consulting Co. analyst Zhang Suoqing said.

The market will be sluggish before the festival but rebound after the holidays, Huaan Securities analyst Bu Dayong said.

PetroChina Co., the country's largest oil producer, dropped 0.8 percent to 11.19 yuan per share.

Sinopec, the country's largest oil refiner, fell 1.48 percent to 8.67 yuan per share.

Zijin Mining Group Co., China's largest gold producer, slid 3.05 percent to 6.68 yuan per share.