Chart of the Day: China’s Growing Mortgage Debt Drags on the Economy
Outstanding personal home mortgages in China have expanded sevenfold from 3 trillion yuan ($430 billion) in 2008 to 21.9 trillion yuan in 2017, according to data from the People’s Bank of China (PBOC), the central bank.
Graphic: Gao Baiyu/Caixin
By the end of September, the value of outstanding home mortgages had further surged to 24.9 trillion yuan, up 18% year-on-year, according to the PBOC. Rising real estate prices, property speculation and the value that Chinese people traditionally place on home ownership have helped drive a trend that has turned many people into what are called “mortgage slaves.”
Home mortgage debt makes up a significant portion of total household debt in China. As of the third quarter, it accounted for 53% of the 46.2 trillion yuan in outstanding household debt, according to the central bank.
The rising cost of housing has been a drag on consumer spending, leading many Chinese to turn to short-term consumer loans, the central bank said in its 2018 financial stability report, which was published last week. In 2017, outstanding short-term consumer credit surged 37.9% to 6.8 trillion yuan.
Many middle-class residents, especially in Beijing and Shanghai, have also mentioned on social media that the cost of housing has caused them to change their spending habits, a phenomenon known as a “consumption downgrade.”
Contact reporter Charlotte Yang (firstname.lastname@example.org)
Sep 21 06:17
Sep 21 06:12
Sep 21 04:59
Sep 20 18:59
Sep 20 17:11
Sep 20 15:54
Sep 20 13:15
Sep 20 12:34
Sep 20 10:43
Sep 20 03:23
Sep 19 18:04
Sep 19 17:22
Sep 19 17:57
Sep 19 16:01
Sep 19 14:45
- 1Exclusive: Former Head of Citic Bank Is Under Investigation
- 2Update: China’s Economic Activity Slowed Further in August
- 3 Central Bank Bucks Expectation of Key Interest Rate Cut
- 4China’s 2015 Stock Crash Was ‘Inevitable,’ Former Securities Czar Says
- 5In Depth: Is China’s Animation Industry Ready to Take Off?
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas