The Shanghai Composite Index closed 1.0 percent lower at 2,853.0 points for last week while the Shenzhen Component Index closed 2.5 percent lower at 8,776.8 last week. The Growth Enterprise Index, which measures growth firms in Shenzhen, closed 2.4 percent lower at 1,443.8.

China's main securities regulator handed out a warning to China International Capital's sponsor representatives Wan Jiuqing and Mo Peng who altered Traffic Control Technology's information disclosure data regarding operations, technologies and management in its initial public offering application to get listed on the upcoming science and technology innovation board.

China has put 68 stocks in the special treatment category this year, an increase of over one-quarter annually, according to data service provider Wind. The concerned firms had problems related to financial fraud and investigations stemming from information disclosure violations, triggering stock price fluctuations that affected their publicly issued bonds. The companies are at risk of delisting after racking up consecutive years of losses. 

Agricultural product futures prices fluctuated greatly. Jujube and apple futures were strong while those of cotton and sugar futures fell.

The China Securities Regulatory Commission released the China-Japan exchange-traded fund product, marking the implementation of the China-Japan ETF connect project previously agreed between Shanghai Stock Exchange and Japan Exchange Group. The first batch of four ETFs was approved for issuance.

The People's Bank of China and China Banking and Insurance Regulatory Commission will take control of Inner Mongolia-based Baoshang Bank for a year to protect the legitimate rights and interests of depositors and other customers due to serious credit risks, the two regulators said in a joint statement on May 24. 

China's lottery sales fell 13 percent annually to CNY36 billion (USD5.2 billion) last month, according to finance ministry data. Sales for the first four months fell 2.5 percent to CNY142.3 billion.