China stocks nosedive, reversing earlier rally

China stocks took a nosedive on Friday from an earlier rally amid weaker-than-expected economic data.

The benchmark Shanghai Composite Index tumbled 1.53 percent to close at 2,593.74 points. The smaller Shenzhen Component Index also slumped by 2.28 percent to 7,629.65 points, and the CSI 300 Index ended 1.67 percent lower at 3,165.91 points.

Official Chinese data released today showed slowing growth in industrial output and retail sales for the month of November, raising investors' worries over the domestic economy.

Almost all sectors posted drops. Only stocks of less than 300 companies listed on the A-share markets gained in this session.

Communication shares were among the biggest decliners, with Digital China Group Co plunging to hit the daily limit of 10 percent, and Shenzhen Sunway Communication Co and Sichuan Huiyuan Optical Communications Co both falling sharply by over 7 percent.

Technology shares including the computer sector and electronic components companies also went down. Yusys Technologies Co dropped 7.42 percent, and CPT Technology Group Co posted a steep fall of the daily maximum of 10 percent.

For the week, the Shanghai Composite Index posted a weekly loss of 0.47 percent, reversing the rise of the previous two weeks. Total turnover also shrank sharply from last week's 692.5 billion yuan to 529.6 billion.