Shares in Asia were choppy on Monday, with disappointing economic data released on Sunday causing mainland Chinese shares to fall.

Figures released showed that growth in both fixed-asset investment and factory output – at 6.1% – were below analysts’ expectations.

The Shanghai Composite index closed down 2.67% at 3,114.80, while Hong Kong’s Hang Seng was flat, up just 0.16% at 21,538.97. The Shanghai index has lost nearly 40% since its peak in mid-June.

The Chinese government also announced plans to restructure its state-owned enterprises, including partial privatisation, as the Prime Minister makes further moves to bring the rapidly spiralling Chinese economy under control.

Further details on the plans were sparse, with guidelines issued by the Communist Party’s Central Committee and the State Council announcing that there were plans ‘clean up and integrate some state firms’. Arguably, reform of state-owned enterprises is one of China’s most pressing needs.

“China’s economy faces relatively big downward pressure, so investor sentiment remains weak,” said Gu Yongtao, strategist at Cinda Securities told Reuters.

Elsewhere in Asia, investors remain cautious in advance of the Federal Reserve meeting this week. Economists are split on whether the US is likely to raise rates for the first time in ten years on Thursday.