Hong Kong’s Hang Seng Index hit a more than 11-month low on Monday, as real estate shares plunged ahead of the China Evergrande bond payment deadline expected later this week.

The benchmark Hang Seng index fell 4.2% to its lowest level since October 6. The index fell 4.9% last week.

Shares of China’s three major real estate developers China Evergrande Group fell more than 12% on Monday afternoon, with the company due to pay $ 119.5 million in interest on two different bonds on Thursday, according to Bloomberg calculations.

Real estate stocks tumble

Real estate counterparts Henderson Land Development and New World Development were among the biggest losers in the Hang Seng Index, tumbling over 13% and over 11% respectively on Monday. Country Garden Services and Sun Hung Kai Properties fell by more than 10% and more than 9% respectively.

“Stock prices and the ability of other real estate companies to raise funds have corrected sharply, prices of Chinese high yield USD-denominated bonds have plunged and a shortage of liquidity is to be expected,” DBS said in a statement. note.

The weakness in the real estate sector spread to bank stocks on Monday.

Bank stocks lose

Hong Kong-listed shares of the Agricultural Bank of China fell about 4.5% on Monday after Reuters reported sources that China’s third-largest lender had made provisions for loan losses on its exposure to China besieged Evergrande.

Its banking counterparts China Merchants Bank and Industrial and Commercial Bank of China fell 11.3% and 3.7%, respectively, on Monday in Hong Kong.

Insurers AIA Group and Ping An Insurance (Group) Co of China lost 4.9% and 6.3% on Monday.

Tech stocks amplify losses

Losses in tech stocks pushed the benchmark again to experience its biggest intraday loss in nearly two months. The Hang Seng TECH index fell 3.1%, with e-commerce giants JD.com and Alibaba Group losing 4.4% and 2.2% respectively.

WeChat owner Tencent Holdings fell 1.8% and was the most traded stock by revenue of around HKD 5.13 billion ($ 658.8 million) on Monday, according to the Hong Kong Exchange website.

Mainland Chinese markets have been closed for a two-day holiday, while the Hong Kong market will close on Wednesday.

Read more: China Evergrande dips at the start of bond redemption week

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