China shares fall as Evergrande woes weigh on property, financials

The blue-chip CSI300 index was down 1.5% at 4,917.16, while the Shanghai Composite Index lost 1.4% to 3,662.6 points. ** Property developers tumbled 3.8%, while the financials sub-index shed 2.9% after cash-strapped China Evergrande Group warned of a risk of cross-default as real estate sales continued to plunge.

Chinese shares closed lower on Monday, dragged by real estate and financials after the country's most indebted developer warned of a risk of a cross-default. The blue-chip CSI300 index was down 1.5% at 4,917.16, while the Shanghai Composite Index lost 1.4% to 3,662.6 points.

** Property developers tumbled 3.8%, while the financials sub-index shed 2.9% after cash-strapped China Evergrande Group warned of a risk of cross-default as real estate sales continued to plunge. ** The developer's struggles to quickly sell off assets and avert defaults on its massive liabilities are raising the risk of contagion for other privately-owned developers, fund managers and analysts say.

** China reported 59 new locally transmitted COVID-19 cases for Sept. 13, up from 22 infections a day earlier, ahead of the week-long National Day holiday starting on Oct. 1, a major tourist season. ** A sub-index tracking tourism stocks dropped 2%.

** The resource industries sub-index and the infrastructure sub-index fell 3% and 3.5%, respectively. ** A sub-index tracking new energy vehicles surged 3% before slipping 0.8% in the previous session.

** China said on Monday the government will encourage consolidation of the overcrowded electric vehicle industry, while would also improve its charging network and develop EV sales in rural markets.