Beijing  - Chinese shares fell more than 5 per cent on Monday amid increasing worries about shrinking liquidity and pessimistic economic forecasts.

The Shanghai Composite Index was down 5.79 per cent, or 176.34 points, to close at 2,870.63. The Shenzhen Component Index dropped 6.65 percent, or 830.95 points, to finish at 11,668.8, Xinhua news agency reported.

Combined turnover on the two bourses shrank to 214.47 billion yuan (31.40 billion dollars) from previous trading day's 227.67 billion yuan.

Renewed pessimism drove down resource-related stocks. The index for coal companies slumped 5.97 per cent, while the index for the nonferrous metal sector dropped 5.93 percent and the steel industry slid 4.76 percent.

Real estate shares, which soared in previous days on rising housing prices, also dropped on Monday, with the index losing 3.8 per cent. (dpa)