Chinese stocks fell sharply on Thursday as heavy selling in the energy sector and worries about the levels of borrowing in the stock market added to broader concerns over growth and the global sell-off in equities.

The Shanghai Composite index closed down 2.9 percent at 2,486.42, after hitting its lowest point since November 2014 on Thursday morning.

The blue-chip CSI300 index was down 2.4 percent.

Li Zheming, an analyst at Datong Securities in Xi'an, said the market was dragged down by a confluence of factors, and that overall market sentiment was weak on Thursday.

"Investors have been concerned about risks posed by shares pledged for loans," said Li Zheming, referring to the jump in margin lending where major investors in companies borrow by pledging their shares.

"There is also some connection with the fall in oil prices," he said.