China’s “loan stop wave” resumes?Homebuyers say slow progress on unfinished projects demands quicker government action – BBC News

September 21, 2022

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Real estate investment in China accounts for 13% of GDP, compared with 5% in OECD countries.

In July this year, a rare protest broke out in China, and some home buyers issued a public statement deciding to stop paying mortgages because of “unfinished” real estate projects. The government immediately introduced measures to allow mortgage payments to be held for up to six months, and to use policy bank funds to speed up construction.

Two months on, Reuters reports that limited progress on the shutdown projects will exacerbate loan shutdowns.

Buyers of 342 real estate projects across China joined the boycott on Sept. 16, up from 319 at the end of July, according to a list of projects built by loan-stoppers on the open-source website GitHub.

Ashley (pseudonym) of the central Chinese city of Zhengzhou is one of them.

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