Less than a week after Evergrande and Kaisa. defaulted the markets have another property developer to worry about. Stephen Engle reports. Chinese property stocks plunged for a third day, heading for the lowest level since early 2017, after a deal between two units of Shimao Group Holdings Ltd. heightened corporate governance concerns in an industry already grappling with a liquidity crisis. Shares of Shimao Group and its property-services unit were among the biggest losers in Hong Kong trading on Tuesday as a Bloomberg index of property stocks sank 4.1%. A connected-party acquisition announced by the developer late Monday “not only implies tight liquidity conditions for Shimao, but is also a corporate governance red flag,” JPMorgan Chase & Co. analysts wrote as they downgraded both stocks. Last week’s burst of optimism that the worst might be over for China’s embattled property sector is quickly fading as investors race for […]