** Shares of China's Shimao Group dropped as much as 15.1% to HK$0.73, their lowest since Sept. 26
** Shimao said on Friday CPYM Link Investment filed a liquidation petition in the Hong Kong high court regarding a 258 mln yuan ($35.2 mln) cross-border loan guarantee by Shimao
** First hearing set for March 19
** This is the second such case since last week when China Cinda Asset Management filed a petition against Sunac China
** Sunac China said it would oppose the petition and was in active talks with China Cinda's unit to find a solution
** Shares of Sunac China, which plunged 25.7% on Friday, rebound 10.8% on Monday morning
** Hang Seng Mainland Properties Index gains 0.2%, while index tracking properties and construction stocks
slips 0.7% and Hang Seng Index falls 1.3%
(Reporting by Donny Kwok)
((donny.kwok@thomsonreuters.com))
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