Mortgage Risk Sparks Record Losing Streak for China Banks
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Investors are offloading Chinese financial stocks at a pace unseen over concerns about the declining quality of home loans. Thursday’s 2% decline in the CSI 300 Financials Index was its 10th straight drop, the longest losing streak since the gauge was formed in 2005. Credit Suisse Group AG said the nation’s banks are facing an “unprecedented challenge” after home buyers in more than 50 Chinese cities refused to pay mortgages, while worries deepened over protests related to a rural lending scandal.