Chinese equities continued the downward trend and dropped 0.52 percent in light trade Monday, dipping below the psychologically important 2,800 mark, amid investors' wait-and-see attitude, dealers said.

The Shanghai Composite Index on the Shanghai Stock Exchange closed at 2,763.53 points Monday, down 75.32 points, or 2.65 percent, from the previous close.

The Shenzhen Component Index on the Shenzhen Stock Exchange closed at 11,086.71 points Monday, down 297.45 points, or 2.61 percent.

Combined turnover shrank for a fifth day to 118.5 billion yuan (17.35billion US dollars) from 129.33 billion yuan of the previous trading day.