On the local time July 13, homebuyers refused to pay the mortgage loans as Communist China’s real estate developers delayed construction projects, involving 35 estate projects in 22 cities.
Refusing to pay housing loans will pose a huge threat to the Communist China’s social stability. Non-performing loans triggered by the wave of refusing to pay the loans which has reached 561 billion yuan. It accounts for about 1.4% of the outstanding loan’s remaining sum. Although the proportion is very small, it creates risks and setbacks for the state-owned lenders such as China Construction Bank, Postal Savings Bank of China, and the Industrial and Commercial Bank of China. The non-performing loans’ rate of the Communist China’s housing loan has always been low; And by the end of last Dec., China Construction Bank’s non-performing residential loans were only 0.2%, while the total non-performing loans’ ratio is 1.42%.
The Communist China’s real estate market continued to decline since the Chinese Communist Party’s (CCP) viral pandemic. The large real estate developer such as Country Garden’s bonds in Communist China fell to record lows. Bank share prices continued to fall, the Shanghai and Shenzhen bank index fell as much as 2.7%, the biggest drop since April 25.