China’s Stocks Fall on Concern Tightening Is Slowing Growth

China’s stocks fell, driving down the benchmark index by the most in a week, on concern higher material prices will fuel inflation and the nation’s tightening policies are slowing the world’s second-biggest economy.

Air China Ltd. and China Southern Airlines Co. led losses for airlines after an industry group cut its forecast for carriers’ profit because of oil prices. China CNR Corp., the nation’s second-biggest trainmaker, slid to the lowest this year on investors’ speculation spending in railways will slow. China Merchants Bank Co. rose 4.2 percent, leading gains for financial companies, as Sanford C. Bernstein became the latest brokerage to predict lenders’ earnings may exceed estimates.