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Banks in China are facing up to US$350 bn in losses from property crisis

August 1, 2022 by admin 0 Comments

The $350 billion figure is being touted in a worst case scenario as stalled projects have dented the confidence of hundreds of thousands of homebuyers, triggering a mortgage boycott across more than 90 cities and warnings of broader systemic risks.

In the worst-case scenario seen:

S&P Global Ratings estimated that 2.4 trillion yuan ($356 billion), or 6.4% of mortgages, are at risk
Deutsche Bank AG is warning that at least 7% of home loans are in danger

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So far, listed banks have reported just 2.1 billion yuan in delinquent mortgages as directly affected by the boycotts.

Info via a Bloomberg report (gated)

This article was originally published by Forexlive.com. Read the original article here.