Chinese equities closed lower on Wednesday as the benchmark Shanghai Composite Index dropped 0.9 percent, or 26.21 points, to close at 2,877.9 points.

The Shenzhen Component Index lost 0.82 percent, or 105.49 points, to close at 12,766.95 points.

Combined turnover shrank to 239.84 billion yuan (36.03 billion U.S. dollars) from 259.64 billion yuan on the previous trading day.