Chinese stocks fell Monday on growing worries over a possible interest rate hike or other policy shifts if economic figures due out later this week show inflation rising.

The benchmark Shanghai Composite Index shed 92.48 points, or 2.4 percent, to 3,821.92. The Shenzhen Composite Index of China's smaller, second bourse fell 32.92 points, or 3 percent, to 1,057.07.

China's inflation benchmark, the consumer price index, for June is due Thursday. Rising food prices are expected to push it above 4 percent after it touched a two-year peak of 3.4 percent in May, Deutsche Bank said in a research note Monday.

"If the economic data are as strong as expected, a near-term interest tax cut or rate hike are very likely," said Zhu Haibin, an analyst at Essence Securities.

Heavyweight financials were among the day's biggest losers after a recent rally. Shenzhen Development Bank dropped 6.4 percent to 26.55 yuan; Hua Xia Bank fell 4.8 percent to 10.69 yuan and Citic Securities lost 5 percent to 52.98 yuan.

Some traders also attributed Monday's decline to concerns new share offerings will lead to a supply glut, after Hong Kong-listed China Coal Energy became the latest company to announce plans to sell shares in Shanghai.

Other state-run giants planning to list shares on the mainland include China Construction Bank, PetroChina and Shenhua Energy, another major coal miner.

In currency dealings, the yuan gained against the dollar after its official rate was set at a new record high of 7.5681 Monday morning. The dollar was at 7.5662 around 0730 GMT on the over-the-counter market, down from Friday's close of 7.5695.