Shanghai stocks closed down 1.27 per cent in volatile trading today, extending days of falls despite a central bank interest rate cut aimed at boosting the flagging economy and slumping shares, dealers said.

China’s benchmark Shanghai Composite Index fell 37.68 points to 2,927.29 on turnover of 461.8 billion yuan ($72.1 billion). It surged up to 4.29 per cent and was down as much as 3.85 per cent during the day.

The Shenzhen Composite Index, which tracks stocks on China’s second exchange, dropped 3.05 per cent, or 53.31 points, to 1,695.76 on turnover of 432.2 billion yuan.