The blue-chip CSI300 index fell 2% to 4,529.32, while the Shanghai Composite index lost 1.7% to 3,429.96.
Russian forces fired missiles at several Ukrainian towns and landed troops on its southern coast on Thursday, officials and media said, after President Vladimir Putin authorized what he called a special military operation in the East.
China reiterated an appeal to all parties involved in the situation in Ukraine to exercise restraint and rejected a foreign journalist’s description of Russia’s actions as an invasion.
“Asian stock markets generally recorded large losses today, and the deteriorating situation in Ukraine further impacted financial markets,” said Kenny Ng, securities strategist at China Everbright Securities International.
China will maintain stability in the real estate market and strengthen the coordination and precision of real estate policies this year, said the country’s housing minister.
The real estate sub-index fell 1.5%, while the financials sub-index fell 2%.
Consumer staples fell 2.7%, while information technology stocks fell 2.2%.
Oil stocks rose amid a broader market slump on global supply concerns, with China Oilfield Services and PetroChina up 8.8% and 4.2%, respectively.
“The simple strategy is to bet on a surge in inflation, which means buying oil and agricultural products,” said Yuan Yuwei, a partner at Water Wisdom Asset Management in Hang Zhou. “China will likely increase its support for sectors such as agriculture, semiconductors and new energy.”
Coal miners ended down 1.2%. China announced on Thursday that it had established a benchmark thermal coal price guide to cool the rally.
Escalating geopolitical tensions pushed the defense sub-index up 0.8%.