The phenomenon of collectively refusing to pay housing mortgage loans in many provinces and cities in China, triggering the turbulence of the real estate market.People familiar with the matter revealed that the Chinese government has urgently met many major banks to discuss this issue.
According to BloomberIn the larger range, more home buyers are followed.
People familiar with the matter said that although there is no immediately solution, the regulatory agency requires local governments and banks to report the impact as soon as possible, including real estate projects affected by its jurisdiction.Two of them said that some banks plan to tighten the request for mortgage loans in high -risk cities.
Recently reporting reports on refusal to pay housing mortgage loans have been extended rapidly, and also on the Weibo hot search list, which led to Chinese bank stocks, real estate development, building materials, kitchen and bathroom appliances, building decoration and other sectors.Falling, it reflects the external concerns that the outside world's real estate crisis may spread to the financial system and cause social turmoil.Bank of China is already working hard to deal with the challenges brought about by the liquidity pressure of developers, and now they have to prepare for the breach of contract for buyers.
According to data released by the China Real Estate Industry Association, as of Wednesday (July 13), buyers of at least 100 projects in more than 50 cities have stopped mortgage payment.Jefu Rui Financial Group analyst Shujin Chen said that the number is higher than 58 projects on Tuesday with only 28 on Monday.It is unclear how many buyers have refused to repay in these projects.
She said that China's policy makers are facing dilemma when dealing with this problem.On the one hand, relaxation of loan rules to facilitate buyers who are waiting for the completion of the property may encourage more defaults.On the other hand, social stability is still the primary task of the Chinese government. Before the Chinese government congress was held this year, avoiding a deeper real estate crisis brought impact on markets and banks a political needs.
It is reported that any measure to tighten the mortgage loan will put more pressure on the already weak real estate sales, because potential buyers are discouraged by higher borrowing costs and longer loan approval time, and then thenAnother layer of shadow is made to the real estate market that was originally dim.
In order to appease the market, many listed banks such as Agricultural Bank of China, Construction Bank, and Industrial Bank have issued a mortgage loan investigation announcement on Thursday (July 14), saying that the business involving the risk involvedSmall scale and controllable overall risks.
