(Yicai Global) Nov. 24 -- Due to large gains of blue-chip stocks recently, the Shanghai and the Shenzhen stock markets closed down sharply yesterday, with the Shanghai Composite Index suffering the biggest single-day decline on profit taking.

The two bourses opened lower in early trading. Although there were rebounds in the afternoon, they dropped sharply. At the closing on the day, the benchmark Shanghai Composite Index fell 2.29 percent at 3,351.92 points, the largest single-day decline in the year, with CNY270.4 billion (USD34.6 billion) swapped. The Shenzhen Component Index closed at 11,175.49 points, down 3.33 percent, with turnover of CNY283.9 billion. The Growth Enterprise Index declined 3.16 percent to 1,794.78 points, with CNY70.1 billion changing hands.

In terms of liquidity, the People's Bank of China (PBOC), the country's central bank, injected CNY270 billion in reverse repos via open market operations yesterday. This resulted in a net injection of CNY100 billion for the day, as a total of CNY170 billion in reverse repos matured on Thursday.

The major factors leading to the adjustment include large blue chips which boosted the indexes recently being at high levels and investors being cautious, insiders said.