(Bloomberg) — A tumble in Shimao Group Holdings Ltd.’s bonds and shares has sparked renewed concern over the health of China’s property sector and threatens an already precarious rebound in the nation’s high-yield notes. 

China’s economy likely suffered from a slowdown in November, in part due to the continuing downturn in China’s property sector. According to an economist survey, the median estimate of growth in fixed assets investment likely fell last month.

Shimao’s shares dropped 12% to the lowest in almost a decade, while its bonds dropped, with one yuan note tumbling more than 50% before being suspended. According to an email response, the firm was investigating market rumors which caused the selloff. The gauge of stocks in property developers fell again for the second day.

These are the Key Developments

• What’s Next for China Evergrande, Crushed by Debt: QuickTake
• Evergrande’s Hui Forced to Sell Part of Stake in Defaulted Firm
• Hard Landing in Property Market Would Crater China’s Economy
• China Attempts to Control the Global Evergrande Collapse Message
• Sunac’s Active Funding Exercise May Boost Bonds: Credit Outlook

China’s Economic Activity May Slow (8:23 a.m. HK).

China’s economic activity likely declined in November as a result of the continuing downturn in the real estate sector and subdued consumer spending.

According to the median estimate of an economist ahead of Wednesday’s data release, growth in fixed assets investment likely fell last month. This was due to slow property investments. 

Amundi Says Crackdown May Boost Funds (7:59 a.m. HK) 

China’s crackdown on the property sector, which has sparked defaults at China Evergrande Group and others, should provide a lift to stocks and bonds as investors shift away from real estate, a top executive at Amundi SA said.

“We are going to see money flowing from real estate investments to capital markets investments,” said Xiaofeng Zhong, chairman of Amundi’s business in the Greater China area. “The government is encouraging funds flowing into the financial market.”

Shanghai Shimao will sell assets to Shimao Services at 1.65 Billion (6:00 p.m. HK).

According to statements to the Shanghai Stock Exchange, Shanghai Shimao Co. agreed to sell its property management assets as well as related value-added service to Shimao Services. This company is controlled by Hui Wing Mau (Chinese property tycoon). Shanghai Shimao will receive a total of 1.16 trillion yuan ($182million) in profit from the deal.

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