Chinese Property Sector Selloff Continues as Evergrande Worries Mount
Shares of Chinese property developers continued to slide Monday as worries mounted that China Evergrande Group is moving closer to a default, signaling the potential for a wider contagion in the sector. The Chinese property giant, nursing more than $300 billion in debt, is seen as likely to default this week and analysts have warned the looming crunch has potential to shake up financial markets. The Hang Seng Mainland Properties Index plunged more than 6.0% on Monday morning, taking year-to-date losses to 33%. Evergrande fell 17% to HK$2.11, while Sunac China Holdings Ltd. slid 10% and Guangzhou R&F Properties Co. fell 7.3%. Property-management companies also tracked lower, with Country Garden Services Holdings Co. retreating 12%.