Caixin
Jul 15, 2022 04:34 AM
FINANCE

Spreading Mortgage Strike Stokes Financial Contagion Fears

Mortgage loans have been among the safest assets of Chinese banks with the nonperforming ratio stabilized at 0.3% for years
Mortgage loans have been among the safest assets of Chinese banks with the nonperforming ratio stabilized at 0.3% for years

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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