Chinese share prices continue to lose ground on Thursday as the benchmark Shanghai Composite Index dropped 58.56 points, or 1.65 percent, to close at 3,485.63 points.

The Shenzhen Component Index on the Shenzhen Stock Exchange market closed at 12,366.19 points, down 293.63 points, or 2.32 percent.

The Hushen 300 Index reflecting the performance of China's Shanghai and Shenzhen stock exchanges closed at 3,711.44 points, losing 71.61 points, from the previous close.

The combined turnover was about 142.5 billion yuan ($20.6 billion), down from the previous day's 150 billion yuan.

Sinopec and PetroChina, the two heavyweights which pushed the stock index up on the previous day, both dropped on Thursday. The two stocks opened lower and began to rise suddenly in the afternoon session, but ended 0.88 percent and 2.18 percent lower respectively.

China's economic planning department on Thursday dismissed as a "groundless rumor" reports saying the country might liberalize the prices of refined oil and natural gas soon.

These reports had helped boost the share prices of PetroChina and Sinopec at the Shanghai stock market on Wednesday afternoon. The two stocks gained 9.99 percent and 6.63 percent respectively at the close.

Oil price rises in the international market drove up new energy stocks on Thursday. Some Sichuan-based companies continued their upward trend as the government pledged to allocate 70 billion yuan (around $10.1 billion) this year for reconstruction in the quake-stricken area.

Analysts said investors tend to wait and see as the earthquake impact and following policies remain unclear.

Amid worries about the national economy, investors pin their hope on possible favorable policies by the government.