The mortgage boycott in mainland China over the ongoing property crisis shows no signs of stopping, with online data highlighting its spread.
Homebuyers are boycotting 342 projects in 119 cities in mainland China – up from about 320 projects in 100 cities in early August – according to documents compiled from popular file-sharing platform GitHub. A higher number of boycotts are located in the central provinces of Henan and Hunan.
Boycotts continue to grow despite a series of measures including interest rate cuts, financial support for developers, and special loan issuances.
Banking Damage
Lenders all over the country have felt the pain from the ongoing property crisis, including the country’s six largest banks which were all hit by real estate-related non-performing loans.
According to Citi estimates, the proportion of property-linked bad loans has increased to 30 percent.
Separately, HSBC chief Noel Quinn said during a BofA conference that the real estate market has undergone a «massive correction» with the downtrend potentially persisting for another two years, according to a «Bloomberg» report.
