Spreading Mortgage Strike Stokes Financial Contagion Fears
Escalating refusals by frustrated homebuyers to make mortgage payments on stalled property projects delivered a hit to Chinese bank stocks amid growing fears of financial contagion.
Stocks of Chinese banks plummeted for two consecutive days as the news swirled. Bank stocks in Shanghai declined 1.69% Wednesday and a further 1.54% Thursday, according to data from Hithink Flush Information Network Co. Ltd.
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