Chinese shares slumped more than five percent Friday afternoon as tight market liquidity caused by new share issues triggered a large sell-off, dealers said.

The benchmark Shanghai Composite Index fell 5.09 percent, or 243.61 points, to 4,541.75 near the end of the trading session.

The Shenzhen Composite Index, which tracks stocks on China's second exchange, tumbled 5.42 percent, or 158.01 points, to 2,755.59.