BEIJING, March 24 (Xinhua) -- Chinese stocks were sharply lower Monday on profit taking and liquidity concerns, pushing the key stock index to the lowest close since July 5.

    The benchmark Shanghai Composite Index plunged 170.39 points, or 4.49 percent, to 3,626.19. This is the index's largest percentage point loss since Jan. 28 when it sank 7.19 percent.

    The index opened 0.9 percent higher, but reversed to make losses in spite of the upbeat news that the securities regulator had approved another 4 mutual funds Friday.

    The Shenzhen Component Index tumbled 620.72 points, or 4.52 percent, to 13,098.24.

    Declining shares outnumbered gainers by 678 to 155 in Shanghai and by 543 to 124 in Shenzhen. Aggregate turnover shrank to 129.61billion yuan from 144.06 billion yuan on Friday.

    The heavy sell-off came as the news that the country's growth enterprise board would be soon launched added further liquidity concerns, said Qin Hong, an analysts with Bohai Investment.

    The market was expected to remain weak before the government introduces any substantial measures to shore up market confidence, which has been severely damaged after the five-month long correction, according to Beijing Shoufang.

    Large caps led the decline as fund managers dumped their stocks to tackle with redemption pressures, analysts said. The key Shanghai index has fallen nearly 41 percent from its record high on Oct. 16 last year.

    PetroChina, which accounts for one quarter of Shanghai Composite Index, tumbled 5.71 percent to 19.83 yuan on expectation of weak earnings in the first quarter. Its net income grew at a disappointing annual rate of 2.4 percent last year. China Petroluem and Chemical Corp. (Sinopec) was down 5.65 percent to 13.03 yuan.

    Financial sector fell the most as it sank nearly 6 percent. Shanghai Pudong Development Bank plummeted by the 10 percent daily limit to 30.85 yuan. Ping An Insurance shed 9.81 percent to 50.56 yuan. The two have tumbled more than 40 percent on lingering worries that their planned secondary offerings would dilute earnings.

    China Life lost 8.15 percent to 28.97 yuan. Industrial and Commercial Bank of China slid 3.16 percent to 5.52 yuan.

    Shares in metals producers resumed losing streak as investors feared the steep price falls last week would hurt their profitability. Aluminum Corp. of China (Chalco) dropped 6.71 percent to 22.53 yuan. Jiangxi Copper Co. fell 8.78 percent to 35.11 yuan.

    Steel shares fell heavily following last week's rally on industry consolidation. Baoshan Iron and Steel was down 6.83 percent to 13.92 yuan. Wuhan Iron and Steel was down 9.45 percent to 15.81 yuan.