By Yifan Wang

Shares of China Evergrande Group and several of its listed units continued declining on Tuesday, extending a sharp downturn this week after a creditor won a legal ruling to freeze about $20 million of the indebted Chinese property developer's assets, intensifying worries about its financial conditions.

China Evergrande has lost as much as 16% on Tuesday morning to 6.91 Hong Kong dollars, its lowest level since early 2017. The company's property-management unit Evergrande Property Services Group Ltd. slumped as much as 8.9% and its car-making unit China Evergrande New Energy Vehicle Group Ltd. plunged 11%.

The decline followed steep losses in Evergrande shares on Monday, when a local court ruling circulated among investors. A court in China's eastern Jiangsu province issued a ruling to freeze 132 million yuan ($20.3 million) of bank deposits and assets held by Evergrande subsidiaries, at the request of lender China Guangfa Bank Co.

Evergrande on Monday said it may sue China Guangfa for alleged abuse of legal procedures. The company said a subsidiary owed CNY132 million to a Guangfa Bank branch in Jiangsu, but said the loan isn't due until 2022.

Write to Yifan Wang at yifan.wang@wsj.com

(END) Dow Jones Newswires

07-19-21 2317ET