China shares closed down on Wednesday as cautious investors held back waiting to hear the government's economic plans to be made during the country's annual political meetings.

At the close, the Shanghai Composite index was down 0.51% at 2,883.74.

The blue-chip CSI300 index was down 0.53%, with its financial sector sub-index lower by 0.04%, the consumer staples sector down 0.57%, the real estate index down 1.21% and the healthcare sub-index down 1.18%.

The smaller Shenzhen index ended down 0.97% and the start-up board ChiNext Composite index was weaker by 1.213%.

The new energy vehicle sector bucked the trend, rising 2.3%, on expectations of more government incentives after Shanghai's plan to give 4,000 yuan each to buyers for purchasing vehicles with lower emission.