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SHANGHAI, Jan 21 (Reuters) - China stocks ended Thursday down around 3 percent after a volatile session, as relief over stabilizing currency markets and the central bank's liquidity injection was offset by a tumble in U.S. and European markets.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 2.9 percent, to 3,081.35, while the Shanghai Composite Index lost 3.2 percent percent, to 2,880.48 points.
Investors have been unnerved by depreciations in the Chinese yuan recently and the Hong Kong dollar this week against the U.S greenback, but on Thursday, both currencies appeared steady.
The market also benefited from the central bank's moves to inject liquidity into the banking system ahead of the Chinese New Year Festival next month.
However, against the backdrop of gloomy global equity markets, China stocks surrendered earlier gains, underscoring fragility of investor confidence.
Reporting by the Shanghai Newsroom