Bonds and shares issued by Chinese developers tumbled on Friday (October 8).
It comes as markets there returned from a week-long holiday with few clues on how regulators aim to contain China Evergrande’s debt problems.
The property group faces one of the country’s largest defaults, with more than $300 billion of debt.
Its potential collapse has investors worried about contagion spreading through the property sector in China.
Evergrande's debt-laden peers have also been hit with rating downgrades on looming defaults.
On Friday onshore bonds caught up to the selling.
The Shanghai Stock Exchange suspended trading in two bonds issues by smaller developer Fantasia.
One dropped more than 50% after the group's controlling shareholder missed the deadline for a $206 million debt payment.
Chinese regulators have not made any comments specifically on Evergrande during the holiday week.
Investors have waited to hear from the firm after it requested a halt in the trading of its shares in Hong Kong on Monday (October 4).
It said an announcement was due about a major transaction.
Worries about Evergrande contagion also hit share prices Friday.
One index tracking the property sector was down 1.75% in afternoon trade.