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To: roto who wrote (4807)	7/17/2022 12:37:18 AM
From: Cogito Ergo Sum	Read Replies (1) \| Respond to of 10550

hmm!.. 1/2 deserves reco cannot assign .5 LOL

To: roto who wrote (4807)	7/17/2022 10:47:36 AM
From: Sun Tzu	Read Replies (2) \| Respond to of 10550

Why Are People Across China Refusing to Pay Their Mortgages? What to Know So Far FOLLOW THIS STORYTHREAD Contributors: Kristine Servando Updated on July 15, 4:37 AM EDT What You Need To KnowWhy are people across China refusing to pay housing loans? A wave of disgruntled homebuyers are refusing to pay mortgages for unfinished or stalled housing projects, as debt-strapped property developers run out of cash. Payments have stopped on at least 100 projects in more than 50 cities, according to researcher China Real Estate Information Corp. Analysts believe that a drop in home values may be another driver for the refusal to meet payments. Until recently, China’s mortgages have been considered among the safest banking assets because of high down payments and collateral value. What’s been going on in China’s housing sector? The nation’s real estate slump began last year as Xi Jinping sought to tame bubbly prices and reduce risks by curbing the growth of mortgages and funding for property developers. City and provincial closures as Beijing battled a Covid outbreak also contributed to a downturn in housing sales. Property prices have plunged and a domino line of developers have defaulted on their bonds. China's financial system is sitting on 46 trillion yuan ($6.8 trillion) of outstanding mortgages and still has 13 trillion yuan of loans to the country's beleaguered developers. The market has shown little sign of recovery depsite some cities loosening restrictions on home purchases and the central bank cutting mortgage rates in May. How has China responded to the mortgage boycott? The rapidly rising number of refusals to pay have triggered losses in Chinese bank shares and developer bonds. Authorities held emergency meetings with banks this week to grasp the impact of the mortgage snub, sources told Bloomberg News. Some banks plan to tighten their mortgage lending requirements in high-risk cities, they said. While no solution has been offered, Beijing’s priority is to avoid a deeper property crisis that would send shockwaves across the financial system. Key Coverage How China’s Property Developers Got Into Such a Mess: QuickTake How to Tell If China’s Property Clampdown Has Peaked By The Numbers2 trillion yuanThe amount of mortgages that could be affected by the boycott46 trillion yuanEstimated outstanding mortgages in ChinaOver 50Number of cities where projects have been reportedly affected by mortgage snub Why It MattersHow would the property crisis reverberate through the economy and markets? China’s biggest growth engines are construction and home sales, with the property sector estimated to account for about a quarter of GDP. Any real estate bust would be catastrophic to the nation’s economy, and stress could spread across the world's financial system and reverberate through credit markets around the world. Is China stumbling into a mortgage crisis? Developers only delivered around 60% of homes they presold between 2013 and 2020, while outstanding mortgage loans rose by 26.3 trillion yuan, Nomura analysts said. Should every buyer default, that would lead to a 388 billion yuan ($58 billion) increase in non-performing loans, according to Jefferies. GF Securities Co. expects that as much as 2 trillion yuan of mortgages could be affected by the boycotts. However, Chinese lenders have mostly said that the situation remains controllable. In most cases, the amount overdue makes up less than 1% of the lender's total mortgage portfolio. Bloomberg China Is Giving Off Strong Lehman Brothers Vibes Xi keeps going missing, the economy is on the brink and people are getting restless. Mark Gongloff Timeline 2 days ago How China’s Property Developers Got Into Such a Mess: QuickTakeJuly 15, 2022, 12:33 AM EDT 3 days ago China Mortgage Boycott May Tighten Escrow Rules, Says NomuraJuly 14, 2022, 10:27 PM EDT 3 days ago China Banks Report $312 Million of Bad Loans in Mortgage BoycottJuly 14, 2022, 9:25 PM EDT 3 days ago Mortgage Risk Sparks Record Losing Streak for China BanksJuly 14, 2022, 6:00 PM EDT 3 days ago China Is Giving Off Strong Lehman Brothers VibesJuly 14, 2022, 4:56 PM EDT 3 days ago More Chinese Homebuyers Refuse to Pay Mortgage Loans Amid Contagion FearsJuly 14, 2022, 1:34 AM EDT 4 days ago Chinese Homebuyers Across 22 Cities Refuse to Pay MortgagesJuly 13, 2022, 2:21 AM EDT 5 months ago How to Tell If China’s Property Clampdown Has PeakedMarch 2, 2022, 4:00 PM EST Show All 8 stories