China now faces ‘New Challenges’ in Mortgage Surge

From Wall Street Journal reporting, rapid increase in property loans in China has posed “new challenges” for the Chinese government as it seeks to ensure the nation’s financial stability at a time of rising bad debt, a senior banking regulator said. Continue Reading

 

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From January through August, property loans made up about 40% of new loans.

New properties are visible near a square in Zhengzhou, in China’s Henan province, in September.

At a press briefing Thursday, Wang Shengbang, a deputy director at the China Banking Regulatory Commission, said the surge in real-estate loans, which was triggered by a homebuying frenzy in many Chinese cities in recent months, has both “positive and negative sides.”