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Chinese shares closed lower on Monday, continuing the downward trend of the previous trading day, dragged down by heavyweights.

The benchmark Shanghai Composite Index extended a two-day losing streak, ending 12.33 points or 0.45 percent lower at 2,736.1 points on Monday. The Shenzhen Component Index dropped 65.43 points or 0.69 percent to stand at 9,370.78.

Combined turnover on the two bourses shrank to 61.55 billion yuan ($8.97 billion) from 97.2 billion yuan of the previous trading day.