Shanghai stocks plunged more than five percent in afternoon trading on Thursday, weighed down by worries over China's slowing economy and tight liquidity, dealers said.

The benchmark Shanghai Composite Index slumped 5.06 percent, or 148.24 points, to 2,780.66. The Shenzhen Composite Index, which tracks stocks on China's second exchange, tumbled 6.46 percent, or 121.29 points, to 1,755.18.