China Property Woes Spark Longest Mortgage Debt Halt Since 2015
- Sales of residential mortgage-backed notes set for record drop
- Plummeting home sales, developers’ cash crunch weaken demand
Residential buildings in the Kangcheng neighborhood of Shanghai, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Chinese banks’ issuance of securities backed by home mortgages has plunged, as the crisis in the nation’s property sector drags down a once-popular and relatively safe investment tool.
Sales of residential mortgage-backed securities have fallen 92% so far this year to 24.5 billion yuan ($3.63 billion), according to data compiled from cnabs.com, a website that tracks asset-backed securities in China. There’s been no RMBS issuance since the end of February, the longest dry spell since 2015.