(Bloomberg) -- Chinese property shares fell further Monday, as a housing slump continues and the nation’s most indebted developer appears to be struggling with its closely watched restructuring.

A Bloomberg Intelligence index of developer stocks dropped as much as 2.3% to the lowest level since March 16. Guangzhou R&F Properties Co. and Country Garden Holdings Co. led the declines, each losing at least 6%. 

The industry’s outlook turned darker after data showed home sales in the country extended a plunge amid a widening mortgage boycott, while China Evergrande Group failed to unveil a long-promised restructuring framework on time. Investor confidence also weakened on news of a plan mulled by authorities to seize distressed developers’ idle land to help complete stalled projects, a move that could cost creditors access to some of builders’ most valuable assets.

“Recent developments show that it’s almost impossible for defaulted developers to make a turn-around,” said Li Kai, founding partner of Beijing Shengao Fund Management Co. “More restructurings are in sight. The reality is that developers will have to accept huge discounts in asset disposal, which implies lower recovery ratio for creditors.”

China’s junk dollar bonds, dominated by notes of developers, were little changed Monday morning, according to credit traders. 

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