China's benchmark stock index fell for the first time in five days, led by developers, on concern regulators will tighten mortgage lending to cool housing prices.

"Both property stocks and housing prices are high-flying now, which will easily lead to some concern about the government's crackdown," said Wu Kan, a Shanghai-based fund manager at Dazhong Insurance Co, which manages about $285 million. "The market is now turning cautious towards property stocks from being optimistic."

The Shanghai Composite Index dropped 35.22, or 1.1 percent, to 3089.45 at the close. The CSI 300 Index lost 1 percent to 3340.49.