CX Daily: China’s Banks Feel the Strain as Foreclosures Pile Up

Foreclosures /

In Depth: China’s banks feel the strain as foreclosures pile up

The number of foreclosed properties in China has increased dramatically as families and businesses struggle to meet mortgage repayments. This, together with the ongoing economic downturn, is fueling concerns about the impact on the financial sector.

In the first 10 months of this year, foreclosed properties listed for auction rose by more than 63% year-on-year, reaching 546,000 units. This follows annual increases of more than 20% in both 2023 and 2022, according to Beijing Guoxinda Data Technology Co. Ltd. And they are proving harder to sell.