A senior industry leader said the sector remains saturated, despite increased profits and production of steel mills in the first quarter.
Wider implementation of home-purchase restrictions since September 2016 will slow sales and tighten developers' liquidity gradually, leading to more competition, said Moody's.
The move followed a failure of mediation to settle a disagreement over the right to use the technology in making computer chips.
The Shanghai Composite Index slumped 1.4% to 3,129.53 points, after posting its biggest weekly loss so far this year last week.
Homeowners who wish to upgrade to more spacious or better-located properties are among those most impacted by the recent tightening of China's home purchase rules.
Experts have called on companies and employees to strengthen integrity management in relation to China's job market.
Mercantile Exchange's Asia Pacific head expects mainland clients to increase.
The rent for Grade A office in Beijing's CBD is expected to drop 15 percent by the end of 2021 as supply is expected to rise.
Taiyuan Heavy Industry relies more on rail transit and new energy products.
First-quarter data show crackdown on speculative investments and runaway home prices appears to be working.