Skip to content

China Banks Allow Mortgage Payment Holiday in Covid-Hit Shanghai

  • Shanghai reports record new infections as lockdown extended
  • Megabanks’ profit growth at risk amid Covid, property weakness
Limited traffic during a lockdown due to Covid-19 in Shanghai, on April 7.

Limited traffic during a lockdown due to Covid-19 in Shanghai, on April 7.

Photographer: Qilai Shen/Bloomberg

China’s largest banks are allowing residents in Shanghai to delay their mortgage payments as part of the nation’s broader efforts to support the financial hub in its Covid fight. 

Lenders including Industrial & Commercial Bank of China Ltd. and Bank of Communications Co. are offering Shanghai clients a payment holiday on their mortgage loans for as long as three months. China Construction Bank Corp. allowed clients to delay their payment on both mortgage and consumer loans for up to 28 days while Bank of China Ltd. said any records of overdue payment due to the pandemic will be removed.