The blue-chip CSI300 index fell 0.7%, to 4,860.13, while the Shanghai Composite Index lost 0.6% to 3,564.09 points.
For the week, the CSI300 index shed 0.6%, while the Shanghai Composite Index edged up 0.1%.
A handful of local COVID-19 cases in eastern parts of China have prompted Shanghai city to limit tourism activities and a nearby city to cut public transportation services.
That sent tourism stocks and consumer staples down 1.8% and 0.8%, respectively.
Meanwhile, the real estate sub-index, the energy sub-index, the semiconductor sub-index dropped between 1.2% and 2.8%.
In the global market, the detection of a new coronavirus variant in South Africa spooked investors, pushing them to dump risk assets and flock to safe havens.
Refinitiv data showed outflows of around 800 million yuan through the Northbound legs of the Stock Connect programme ,, showing overseas investors were net sellers of A-shares.
Morgan Stanley said it continues to prefer A-shares in the China space and will wait for a better entry point.
“Recent remarks around a policy easing stance and an A-share structural inflow catalyst are positive, but pressure lingers on the earnings front and consensus’ estimates reduction could last for longer,” Morgan Stanley said in a note.
