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)
