This is a super important story right now. Every single economist I’ve had on shows is following this extremely closely.
bloomberg.com/news/storythre…
Chinese banks reported late last week extent of bad loans related to this specific exposure. The banks said risks are controllable.
bloomberg.com/news/articles/…
The broader issue is weakness in China’s housing market. Prices have been rolling over for 10 straight months. Easy to see why some property developers are running into cashflow issues, both from operating and financing activities.
bloomberg.com/news/articles/…
Interbank rates in China are the lowest in at least 18 months. As many analysts and the central bank itself have pointed out, there is no issue around the liquidity per se.
China is urging its banks to lend to property developers so they can complete unfinished housing projects. The banking regulator issued the guidance to defuse a growing consumer boycott of mortgage payments.
bloomberg.com/news/articles/…
Goldman Sachs discussing arguably the core underlying issue: a weak housing market and some lingering issues around financing options
What’s the short-term solution to these mortgage boycotts we’re seeing in some parts of China housing market? Goldman Sachs weighs in
Solid rally in Chinese bank and property stocks Monday.
JUST IN: China is said to consider allowing hundreds of thousands of homeowners to temporarily halt mortgage payments on stalled property projects. Proposal is yet to be finalised.
Details in link
bloomberg.com/news/articles/…
On mortgage delinquency exposure of the big Chinese banks. Takeaway: Not a major problem at this point for the the big lenders but it could be a big one for the local, rural ones.
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