China's Mortgage 'Boycott'
Recently, an increasing number of homebuyers have stopped making mortgage payments to banks because the construction of the housing units that they bought on pre-sold terms from the cash-strapped developers has been suspended. Mortgage loans have grown quickly and now account for over 20% of total bank loans (Exhibit 1). With developers’ liquidity problem threatening to suspend more home construction projects, leading to more mortgage “boycott”, the concern is whether this problem will lead to a systemic risk pulling the rug from under the financial system.
Om dit artikel te lezen heeft u een abonnement op Investment Officer nodig. Heeft u nog geen abonnement, klik op "Abonneren" voor de verschillende abonnementsregelingen.