Stocks fall on prospect of cooling

SHANGHAI - China's stocks fell, dragging the benchmark index from a three-week high, as investors speculated recent gains were excessive given the prospect of increased government measures to cool economic growth.

Poly Real Estate Group Coand Gemdale Corp lost more than 1 percent after the Oriental Morning Post said Shanghai may demand quicker land payments from developers.

Air China Ltd fell 1.4 percent after UBS AG said its shares were overvalued. Shandong Huatai Paper Co paced declines by paper manufacturers on easing speculation that the government will allow the yuan to appreciate. A higher yuan would cut imported material costs.