BEIJING, Feb. 27  -- Chinese shares slumped sharply on profit-taking on Tuesday, with the major Shanghai index down 8.84 percent, the biggest daily drop in ten years.

The benchmark Shanghai Composite Index, covers both A- and B-shares, tumbled 8.84 percent to closed at 2,771.79 points, the biggest daily dive since Feb. 18 in 1997 when the index dropped 8.91 percent.

The component index of the smaller Shenzhen Stock Exchange lost 9.29 percent, or 797.87 points to end at 7,790.82 points. Turnover on the two bourses totaled 198.9 billion yuan (24.8 billion U.S. dollars).

Market heavyweights declined, with shares of the Industrial and Commercial Bank of China slid 8.04 percent to 4.69 yuan and that of the Bank of China fell 7.23 percent to 4.62 yuan.

China Life, the country's biggest life insurer, lost 9.02 percent to 33.89 yuan.

Share price of China Petroleum and Chemical Corporation, known as Sinopec, slid 10 percent, the daily maximum, after crude oil price hit a two-month high on Monday on higher heating oil demand boosted by winter storm in the United States.

Light sweet crude for April delivery added 25 cents to 61.39 U.S. dollars on the New York Mercantile Exchange, the highest close since Dec. 22.

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