Mainland and Hong Kong stocks slipped on Monday as economic data and mounting default risks by property developer Vanke weighed on market sentiment.

The benchmark Hang Seng Index was down 347 points, or 1.34 percent, to close at 25,628 while the Hang Seng China Enterprises Index fell 1.78 percent to 8,917 and the Hang Seng Tech Index slumped 2.48 percent to 5,498.

The benchmark Shanghai Composite Index was down 0.55 percent at 3,867 while the Shenzhen Component Index closed 1.1 percent lower at 13,112 and the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 1.77 percent to close at 3,137.

The combined turnover of the two main indexes in Shanghai and Shenzhen was 1.77 trillion yuan, down from 2.09 trillion yuan on Friday.

Shares related to glass, food, and chemical fibres led gains while ceramics and textile machinery sectors suffered major losses.

Property shares sank after bondholders rejected China Vanke's initial plan to push back payment by a year, raising the risk of default for the state-backed developer and renewing concerns about China's crisis-hit property sector.

Risk appetite was further curbed by data that signalled China's economy had stalled in November.

New home prices extended declines last month, China's factory output and retail sales grew at their weakest pace in over a year, and new bank loans rose less than expected.

"Economic activity indicators weakened across the board in November," said Zhang Zhiwei, president and chief economist at Pinpoint Asset Management.

"The soft retail sales number is particularly worth watching. The contraction of fixed asset investment and the drop of property prices in recent months have been transmitted to the consumer sentiment."

Investors were also left disappointed by measures announced over the weekend to stimulate consumption.

"We think the time is coming for ending deflation, truly cleaning up the property mess, and boosting consumption demand via reforming the social welfare system," said Lu Ting, chief China economist at Nomura.

Shares of Vanke slumped five percent in Hong Kong and three percent in Shenzhen.

China's CSI 300 Real Estate Index fell 2.1 percent, flirting with record-low levels. In Hong Kong, the Hang Seng Mainland Property Index softened nearly one percent. (Reuters/Xinhua)