The smaller Shenzhen index ended down 0.94% and the start-up board ChiNext Composite index was weaker by 1.076%.
China needs more active fiscal policy as pressure on its economy is still increasing, according to an article by Finance Minister Liu Kun published in the official People's Daily on Thursday.
"Chinese policymakers have been assuring the market with more active policies to boost economy but investors are awaiting the implementation to support their confidence," said Zhang Gang, an analyst with Central China Securities.
The largest percentage losers on the Shanghai index were Sinovel Wind Group Co Ltd, down 10.17%, followed by Sailun Group Co Ltd, which fell 9.73% and Shandong Linglong Tyre Co Ltd - down by 9.14%.
So far this year, the Shanghai stock index is down 5.9% and the CSI300 has fallen 4.2%, while China's H-share index listed in Hong Kong is down 13.4%. Shanghai stocks have risen 0.36% this month.