Beijing  - Stocks in China closed more than 2 per cent down Monday as the mood of investors was hit by reduced profits announced by big companies, the state news agency Xinhua reported.

Oil giant Sinopec and insurance company China Life reported profits lowered by 60 per cent year-on-year in the first quarter, news which saw the companies' share prices drop by more than 4 per cent.

The Shanghai Composite Index closed 2.33 per cent lower than the last trading day at 3,474.72. The Shenzhen Component Index fell by 2.46 per cent to close at 12,782.50 points. (dpa)