Chinese homebuyers refuse to pay mortgages amid contagion fears

Chinese real estate development is highly reliant on presales to fund construction. (Image: Getty)

Fri, 15 Jul 2022

(Bloomberg) – A rapidly increasing number of disgruntled Chinese homebuyers are refusing to pay mortgages for unfinished construction projects, exacerbating the country’s real estate woes and stoking fears that the crisis will spread to the wider financial system.Homebuyers have stopped mortgage payments on at least 100 projects in more than 50 cities as of Wednesday, according to researcher China Real Estate Information Corp. That’s up from 58 projects on Tuesday and only 28 on Monday, according to Jefferies Financial Group I...

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