China stocks close lower on Thursday

Chinese shares closed lower on Thursday, as the latest manufacturing data hit a seven-month low.

The benchmark Shanghai Composite Index dipped 0.18 percent, or 3.77 points, to finish at 2,138.78. The Shenzhen Component Index lost 1.41 percent, or 111.82 points, to close at 7,842.12.

Combined turnover on the two bourses shrank to 298.1 billion yuan (48.75 billion U.S. dollars) from 304.8 billion yuan on the previous trading day.

The HSBC/Markit China flash manufacturing purchasing managers' index (PMI) for February dipped to 48.3 from a final reading of 49.5 in January, said data company Markit in a statement.

PMI above 50 percent indicates expansion and below 50 percent, contraction.

Over 118 shares fell over 5 percent while 35 shares surged by the 10-percent daily limit on the two bourses.

Media-related stocks continued declining with Guangdong Guangzhou Daily Media Co., Ltd. down 6.85 percent to 19.71 yuan. China Television Media Ltd. fell 5.85 percent to 16.59 yuan.

The bank sector struggled after its previous strong performance. Shares of Industrial Bank, Hua Xia Bank and Ningbo Bank all lost over 2 percent.

Security companies shares also sagged when Tencent, one of China's biggest Internet firms, partnered with Sinolink Securities and released an Internet financial product "Yong Jin Bao", which has no brokerage fee.

Bucking the trend, oil companies ended the trading day with strong results, as 10 shares hit the daily increase limit.

Oil refiner Sinopec, one of China's three state-owned oil companies, climbed 10 percent, the first time in the past five year, to 5.17 yuan per share. The company announced on Wednesday that it would bring in social and private capital to market and sell its oil products.