Homebuyers in 22 Chinese cities are refusing to make mortgage payments on unfinished homes. It extends the risk of defaults. The fat tail risk of deleveraging the sector is emerging and puts Beijing in a tight spot, says ywchen1
, forcing bondholders to accept extensions or chase lawsuits. The revolt on mortgage payments underscores Beijing’s failure to ensure the losses stop there.
It puts the focus on China’s property buying preferences. New launches are almost always sold before they are built. When heavily indebted developers run out of cash, buyers are left with nothing but a debt obligation.
Beijing will have to react fast to prevent the situation from escalating, either by allowing homebuyers to delay mortgage payments or letting local governments buy off projects. China Merchants Bank
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Breakingviews - Breakingviews: Euro weakness forces itself on ECB’s agendaThe euro falling below parity with the dollar, as seems increasingly likely, would mark a symbolic threshold for watchers of the single currency’s history. It hasn’t been that low since 2002. For European Central Bank President Christine Lagarde however, the weak currency is both an implicit criticism of the central bank’s monetary policy, and a further thorn in its side.
Leer más »
Breakingviews - China’s “new retail” hype meets old retail realityChina’s “new retail” sector, a phrase coined by Alibaba founder Jack Ma to describe companies that mix e-commerce with brick-and-mortar stores, is showing signs of pandemic-induced premature aging as Alibaba’s subsidiary Freshippo lowered its targeted valuation by 40% to $6 billion, Reuters reported on Tuesday.
Leer más »
Sri Lanka in crisis: President flees and ire turns to PMWhat you should know about the crisis in Sri Lanka, including the latest updates, what's next and remarkable images of protesters storming the PM's offices.
Leer más »
Sri Lanka in crisis: President flees and ire turns to PMWhat you should know about the crisis in Sri Lanka, including the latest updates, what's next and remarkable images of protesters storming the PM's offices.
Leer más »