BEIJING - The central bank's signal not to loosen monetary policy dragged Chinese shares down Wednesday, dampening hopes for moderate stimulus to spur the slowing economy.

The benchmark Shanghai Composite Index dropped 0.89 percent to close at 2,010.08, while the Shenzhen Component Index fell 1.06 percent to close at 7,234.69.

Combined turnover stood at 150 billion yuan ($24.37 billion).

Looming IPO restart weighs on Chinese stocks

The weakness of the equity markets came after the People's Bank of China said in a report Tuesday night that it will maintain continuity and stability in its monetary policy.

The China Securities Regulatory Commission added another 32 companies to its waiting list for initial public offerings (IPOs), raising investor concerns that the upcoming wave of IPOs will drain more money from the market for IPO subscriptions.

As of Wednesday, 273 pre-listing prospectuses had been released to the public.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, slumped 26.83 points, or 2.04 percent, to close at 1,290.03. Most of the upcoming IPOs are expected to debut on the ChiNext board.

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