BEIJING -- Chinese shares slumped Friday over worries of tightening liquidity as money-market rates soared.

The benchmark Shanghai Composite Index fell 1.39 percent, or 31.21 points, to end at 2,210.90. The Shenzhen Component Index sank 2.64 percent, or 237.48 points, to 8,763.61.

Combined turnover on the Shanghai and Shenzhen bourses rose to 172.4 billion yuan ($28 billion) from 160.7 billion yuan on the previous trading day.

Shanghai Interbank Offered Rate gained 231.2 basis points to 8.294 percent, triggering worries of tightening liquidity.

Liquidity shortages hit interbank markets, spreading panic among investors, said Song Qiuhong, a Shunde Rural Commercial Bank analyst.

Risks of tightening liquidity will possibly be more obvious in the last ten days of June and in to July, said Qu Qing, an analyst with Shenyin & Wanguo Securities.

Meanwhile, the yuan continues its appreciation, gaining 117 basis points to a new high of 6.1620 against the US dollar.

Chinese shares will suspend trade Monday for the three-day Dragon Boat Festival holiday and resume operation Thursday.