China Convenes Banks on Mortgage Boycott Roiling Markets
- Officials asked for information on impact of housing loan snub
- More buyers refuse to pay loans on unfinished home projects
Homebuyers have stopped mortgage payments on at least 100 projects in more than 50 cities.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Chinese authorities held emergency meetings with banks after growing alarmed that an increasing number of homebuyers across the country are refusing to pay mortgages on stalled projects, according to people familiar with the matter.
The Ministry of Housing and Urban-Rural Development met with financial regulators and major Chinese banks this week to discuss the mortgage boycotts on concern that more buyers may follow suit, said the people, asking not to be identified discussing a private matter.