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China Banks May Face $350 Billion in Losses From Property Crisis

  • Mortgage boycotts and slowing growth are rattling authorities
  • Pressure seen growing on China’s $56 trillion banking system
Bloomberg business news
China’s Property Crisis Burns Middle Class

China’s banks face mortgage losses of $350 billion in a worst-case scenario as confidence plunges in the nation’s property market and authorities struggle to contain deepening turmoil.

A spiraling crisis of stalled projects has dented the confidence of hundreds of thousands of homebuyers, triggering a mortgage boycott across more than 90 cities and warnings of broader systemic risks. The big question now is not if, but how much it will batter the nation’s $56 trillion banking system.