China shares closed 0.41 percent lower on Friday as investors continued to shed holdings in firms that have joined Beijing's unpopular programme to float $250 billion in non-traceable state holdings.
The benchmark Shanghai composite index finished at 1,094.287 points. It has dived 13.6 percent so far this year, hit by factors ranging from the state-share sell-down to Beijing's economic cooling steps.
"The market was so weak that few investors wanted to trade," said analyst Liu Easing at Galaxy Securities.
Firms that had completed procedures for the state share reform led on Friday's declines. Agricultural firm Shandong Dinghy Seeds Co Ltd was the biggest fallers, plunging 32 percent to 17.70 yuan, while chemical firm Guise Redstart Development Co Ltd shed 31 percent to 4.33 yuan.
"But the index should see some support after a steep fall this year."
Analysts said the index was likely to hover near 1,100 points in the near term.
China in April revived a programme to convert non-traded state shares, which account for two-thirds of market capitalisation, into freely floated stock, triggering worries of a possible flood of new shares onto the stock market.