Moody’s Investors Service has put two of China’s few investment-grade developers on review for possible downgrade, the latest sign that fallout from the real estate industry’s debt crisis is spreading.

China Jinmao Holdings Group Ltd. and China Vanke Co. are facing possible cuts, part of a number of ratings actions announced by Moody’s Thursday following last week’s cut of its sector view.

Jinmao is currently rated just one notch above junk territory while Vanke is three steps into investment grade. The downgrade reviews “reflect high uncertainties” about their ability to recover weakened credit metrics and financials “amid uncertain recovery prospects for China’s property market,” according to the ratings firm.

Chinese property firms have seen new-home sales slump anew the past several months while debt worries involving large builders Country Garden Holdings Co. and Sino-Ocean Group Holding Ltd. have weighed on the market. Moody’s lowered its sector outlook to negative on Sept. 14 “amid weaker economic growth prospects and homebuyers’ concerns over timely project completion and delivery, which dampen property sales despite government support measures.”

In addition to the Vanke and Jinmao downgrade reviews, the ratings firm on Thursday lowered its outlook to negative on seven other builders — China Resources Land Ltd., China Overseas Land & Investment Ltd., China Overseas Grand Oceans Group Ltd., Yuexiu Property Co., Poly Developments and Holdings Group Co., Shum Yip Group Ltd. and Greentown China Holdings Ltd.

Government data released last week showed that Chinese new-home price declines accelerated in August. The loosening of mortgage restrictions resulted in a spurt of homebuying early this month, but sales slowed as September has progressed.

Jinmao and CR Land shares fell as much as 1.9% Friday morning in Hong Kong while COLI dropped 1.3% and Vanke eased 0.9%.

(Adds stock prices in the last paragraph.)