Another Punch to China's Financial System: Mortgage Payments Halted for Unfinished Buildings

Another Punch to China's Financial System: Mortgage Payments Halted for Unfinished Buildings

Another Punch to China's Financial System: Mortgage Payments Halted for Unfinished Buildings

The debt crisis in China's real estate industry is impacting banks gradually. Since this year, the problem of halted construction and rotten residential buildings has been intensifying all over China due to broken capital chains. In recent days, the owners of unfinished properties have collectively decided to stop repaying their mortgages to the bank until the projects are fully resumed.

According to a July 14 report by China Business Network, about 150 residential projects mortgage suspensions have been reported, in about 20 provinces and nearly 70 cities. And the mortgage suspension trend is getting stronger and stronger, many owners who are troubled by unfinished buildings have followed suit, which is likely to continue throughout the country. Some analysts say that once the wave of loan suspensions breaks out, it will not only have a negative impact on China's property market, but will also have a fatal blow to some local banks, which in turn will affect the stability of the whole financial system.