The Hang Seng index dropped 3.51% in Monday afternoon trade. Shares of China Evergrande Group in the city plummeted 14.17%.
The Hang Seng Properties index dropped to a 52-week low, last trading nearly 7% lower.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.63%.
U.S. stock futures also saw declines in the afternoon of Asia trading hours, with Dow Jones Industrial Average futures falling more than 300 points.
Markets in mainland China, Japan and South Korea are closed on Monday for holidays.
Over on Wall Street, stocks have struggled in the seasonally weak month of September, with the Dow Jones Industrial Average seeing three straight weeks of losses — its first in 2021.
Investor focus for the week will likely be on the U.S. Federal Reserve’s upcoming September meeting for clues on the central bank’s tapering of its easy monetary policy.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.34 after a recent jump from below 93.