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My impression was this had already started a while back.
by rossdavidh 3y ago
My impression was this had already started a while back.
- toomuchtodo 3y agoThere has been evidence that it has been occurring, but China is notoriously hostile to citizens who default on financial obligations, so I would expect with liquidation proceeding you'll see a lot more folks decide to stop making payments than those with a more activist appetite previously. > ANZ’s senior China economist Betty Wang believes the scale of the problem is much bigger. She estimates that 1.5 trillion yuan ($223 billion) of mortgage loans, or 4% of banks’ total outstanding mortgage loans, could be affected by the movement. > “What concerns us is if more home buyers cease payment, the spreading trend will not only threaten the health of the financial system but also create social issues amid the current economic downturn,” she wrote in a report on Thursday. https://www.cnn.com/2022/07/14/economy/china-property-crisis-homebuyers-bad-debt-intl-hnk/index.html https://www.cnn.com/2022/07/14/economy/china-property-crisis... (2022)