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China Developers Tumble on Shimao ‘Red Flag’: Evergrande Update

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China Property Sales to Fall by 20% Through 2021: UBS's Wang
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Chinese property developer shares and bonds plunged after a deal between units of Shimao Group Holdings Ltd. heightened governance concerns in an industry already grappling with a liquidity squeeze.

JPMorgan Chase & Co. analysts said a connected-party acquisition announced by the developer late Monday “not only implies tight liquidity conditions for Shimao, but is also a corporate governance red flag.” The latest crisis comes as economic activity in China likely slowed in November partly due to the worsening downturn in the property sector.