SHANGHAI: Mainland equities fell yesterday, dragging the benchmark index to a three-month low, as developers and commodity producers dropped on concern the government will step up measures to slow the world's fastest-growing economy.

Poly Real Estate Group Co slid 4.8 percent and Gemdale Corp slumped 6.2 percent after banks began restricting new loans. Baoshan Iron & Steel fell 3 percent on concern a slowdown will damp demand for metals and other commodities.

The Shanghai Composite Index fell 75.02, or 2.42 percent, to 3019.39 at the close, the lowest close since Oct 30. The MSCI China Index, which tracks 118 mostly Hong Kong-traded mainland companies, joined the Shanghai index in falling more than 10 percent from last year's high.