Global Times reported that China’s banking regulator China Banking and Insurance Regulatory Commission has told that banks should shoulder social responsibility and engage with plans to fill the funding gap and support the acquisition of real estate projects. It has urged the country’s banks to lend more to distressed property developers as a mortgage repayment boycott spreads among apartment buyers angry that the homes they bought off-plan are yet to be built. The boycott is affecting around 100 residential schemes in 18 provinces so far according to China’s Global Times newspaper, while Reuters reports that around 200 schemes and 80 developers are affected.Mortgage protests will further restrict cash flowing to debt-burdened developers who have delayed or halted projects owing to a slump in sales attributed to China’s response to Covid-19, its effects on the economy and restrictive central government policies in recent years intended to deflate China’s property bubble. So dire is the situation that some developers have promised to accept stocks of garlic, watermelons, wheat and barley as down payments from farmers on new apartments
Global Times reported that China’s banking regulator China Banking and Insurance Regulatory Commission has told that banks should shoulder social responsibility and engage with plans to fill the funding gap and support the acquisition of real estate projects. It has urged the country’s banks to lend more to distressed property developers as a mortgage repayment boycott spreads among apartment buyers angry that the homes they bought off-plan are yet to be built. The boycott is affecting around 100 residential schemes in 18 provinces so far according to China’s Global Times newspaper, while Reuters reports that around 200 schemes and 80 developers are affected.Mortgage protests will further restrict cash flowing to debt-burdened developers who have delayed or halted projects owing to a slump in sales attributed to China’s response to Covid-19, its effects on the economy and restrictive central government policies in recent years intended to deflate China’s property bubble. So dire is the situation that some developers have promised to accept stocks of garlic, watermelons, wheat and barley as down payments from farmers on new apartments
