China's stocks declined Wednesday as financial shares post weak performance.

The benchmark Shanghai Composite Index dropped 1.65 percent to close at 3,694.57 points.

The smaller Shenzhen Component Index lost 1.47 percent to close at 12,524.69 points. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, dropped 1.73 percent to end at 2,502.04 points.

Turnover on the two bourses expanded to 960.11 billion yuan (156.92 billion U.S. dollars) from 906.47 billion yuan the previous trading day.

Banking, brokerage and insurance companies led the loss as their sub-indexes all dropped about 2 percent.

China Life Insurance lost 3.49 percent to 28.19 yuan per share. Citic Securities, China's largest broker, lost 3.43 percent to 20.3 yuan per share. Four of the country's five largest state-owned banks ended the trading day with loss of over 2 percent.

Bucking the trend, shares related to Tibet, cement and reform on state-owned enterprises (SOEs) gained on Wednesday, preventing further losses of the stocks market.

Tibet Urban Development and Investment hit the daily increase limit of 10 percent while other shares in infrastructure, mining and tourism in Tibet all climbed up by over five percent.

Six shares gained 10 percent and five more surged over 5 percent in SOEs reform sector.

The military sector extended recent strong momentum with three shares surging 10 percent.