Concern that mortgage boycotts will lead to a rise in souring loans sent a gauge of Chinese bank shares to its lowest level since March 2020.with major banks this week to discuss the mortgage boycotts on concern that more buyers may follow suit, according to people familiar with the matter. Some lenders plan to tighten their mortgage lending requirements in high-risk cities, two of the people said.
“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,” Betty Wang, a senior economist at Australia & New Zealand Banking Group, wrote in a note on Thursday. Nomura Holdings said the refusal to pay mortgages stems from the widespread practice in China of selling homes before they’re built. Confidence that projects will be completed has weakened as developers’ cash woes intensified.
The property industry has an oversized impact on the economy. When related sectors like construction and property services are included, real estate accounts for more than a quarter of Chinese economic output, by some estimates. About 70% of household wealth is stored in property, along with 30-40% of bank loan books, while land sales account for 30-40% of local government revenues, according to Pantheon Macroeconomics’ Botham.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Ireland Ireland Latest News, Ireland Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Business Maverick: More Chinese homebuyers refuse to pay mortgage loans amid contagion fearsA rapidly increasing number of disgruntled Chinese homebuyers are refusing to pay mortgages for unfinished construction projects, exacerbating the country’s property market woes and stoking fears that the crisis will spread to the wider financial system.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: Stocks, US futures pare drop as China tech gains: markets wrapUS Treasury two-year yields, sensitive to imminent Federal Reserve moves, climbed further while longer-maturity rates also went higher. The inversion between two-year and 10-year yields – a potential recession indicator – is the deepest since 2000.
Source: dailymaverick - 🏆 3. / 84 Read more »
BUSINESS MAVERICK: Cartoon Thursday with RicoDefend Truth You saved my life out of all debt I do think I could ever tell you how much you mean to me l will keep telling people about your good work in my life Melisa_Daniel1
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: UK Tories to vote again in leader race as Sunak, Mordaunt aheadEx-Chancellor Rishi Sunak, whose resignation helped trigger the downfall of Boris Johnson last week, is currently leading the race to succeed him after topping the first ballot on Wednesday with 88 votes, ahead of Trade Minister Penny Mordaunt with 67. Foreign Secretary Liz Truss came third with 50 votes.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: US and Israel to sign joint pledge on denying nuclear weapon to IranThe landmark declaration includes a commitment to never allow Iran to acquire a nuclear weapon and to address Iran’s destabilising activities, particularly threats to Israel. You saved my life out of all debt I do think I could ever tell you how much you mean to me l will keep telling people about your good work in my life Melisa_Daniel1 Can we actually believe that this agreement holds water. The same US who called Saudi Arabia a pariah state, now goes cap in hand. Hope MBS well not hope know that he will make him a fool.
Source: dailymaverick - 🏆 3. / 84 Read more »