China Stocks Drop as Valuation Concerns Overshadow Profit

China’s stocks fell on concern a rally this month that lifted the benchmark index from a three-year low was excessive, overshadowing growth in industrial companies’ profits.

Anhui Conch Cement Co. led declines for materials producers, slumping 2.9 percent. Shaanxi Qinling Cement Co. tumbled 6.1 percent, trimming its gain since the Shanghai Composite hit this year’s low on Dec. 3 to 91 percent. Industrial & Commercial Bank of China Ltd. paces losses for financial companies, the worst performer among industry groups in the CSI 300 Index, on speculation banks are hoarding cash to meet year-end capital requirements.