SHANGHAI - Stocks on the Chinese mainland fell for a third day on Tuesday.

The retreat came on concern that government measures to tame inflation are slowing earnings growth as China Life Insurance Co and Datong Coal Mine reported declines in first-quarter profit.

China Life slid to its lowest in three months as Citigroup Inc said its earnings were "lackluster" and Datong Coal Mine lost 1.5 percent. Jiangxi Copper Co Ltd led declines for commodity producers as the metal's price fell the most in seven weeks.

Related readings:  Chinese stocks close higher Wednesday  Property, automotive stocks decline amid cooling measures  Asian stocks gain for third week running  Stocks climb as China Unicom, HSBC advance

"Corporate earnings aren't catching up, and lots of companies' earnings forecasts, particularly small-caps, will be revised lower," said Wang Zheng, chief investment officer at Jingxi Investment Management Co in Shanghai, which manages about $120 million.

"Inflation is still posing a big problem and further increases in interest rates are inevitable."

The Shanghai Composite Index retreated 0.88 percent to 2938.98 at the 3 pm close, the lowest since March 31. The CSI 300 Index lost 0.57 percent to 3230.96, led by material companies.

China may raise rates and reserve requirements for banks in the second quarter to control liquidity, Ba Shusong, a researcher at the State Council's development research center, wrote in a commentary published in the Economic Information Daily on Tuesday.

The nation's consumer prices may rise between 5.2 percent and 5.5 percent in April, China International Capital Corp Ltd said on Sunday. The government's full-year inflation target is 4 percent.

China Life dropped 2.62 percent to 20.83 yuan ($3.19), the lowest since Jan 24. Its first-quarter net income fell 22 percent from a year earlier to 7.97 billion yuan as payouts jumped 88 percent after policies matured, the company said.

Datong Coal Mine fell 1.50 percent to 19.05 yuan after saying profit decreased 13 percent from a year earlier to 275.2 million yuan in the first quarter.

A gauge of material companies in the CSI 300 dropped 1.2 percent. Jiangxi Copper Co Ltd slid 2.7 percent to 36.89 yuan.

Western Mining Co slid 1.32 percent to 17.17 yuan after saying its first-quarter profit dropped 12 percent from a year earlier.

Shandong Gold Mining Co Ltd plunged 5.66 percent to 50.96 yuan as bullion prices retreated.

Banks rose after Shenyin & Wanguo Securities Co Ltd boosted its rating for Industrial and Commercial Bank of China Ltd (ICBC) and Barclays Plc said lenders will report "strong" first-quarter profit as higher interest rates boosted net interest margins.

ICBC rose 0.22 percent to 4.50 yuan. China Minsheng Banking Corp Ltd increased 1.33 percent to 6.09 yuan.

Chinese banks traded in Hong Kong including ICBC may report profit growth of 32 percent on average in the first quarter, spurred by higher net interest margins, according to Barclays.

ICBC's rating was raised to "buy" at Shenyin & Wanguo, which said larger banks have capital advantages over smaller rivals amid stricter requirements for loan-to-deposit ratios.

The nation's banking regulator set capital targets for the nation's five biggest lenders above the minimum 11.5 percent ratio amid concern that credit risks may rise, three people with knowledge of the matter said.

Bloomberg News