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Property Stocks Sink After Demolition Order: Evergrande Update

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Chinese developer shares dropped following local media reports that China Evergrande Group has been ordered to tear down apartment blocks in a development in Hainan province. Evergrande halted trading in its shares and said the order affected more than three dozen buildings but had no impact on the rest of the development.

An index of Chinese developer shares slumped as much as 2.8% in Hong Kong on Monday before closing 1.7% lower. Evergrande will handle the case in accordance with the demolition order from the local government in Hainan, a unit of the company said in a statement. Evergrande’s comments came after Cailian reported that the local government told Evergrande to demolish 39 buildings in 10 days because the building permit was illegally obtained.