HSBC is hopeful that China has the cure for its property woes:
China’s housing market continues to reel. The latest challenge is the refusal of a small group of homebuyers in recent weeks to make mortgage payments for unfinished homes.
Not only could this hurt sentiment among homebuyers more broadly, but it could also add financial stress in the wider construction sector, with some suppliers of affected developers also at risk of stopping debt payments. Given the importance of the sector for the wider financial system, the risks are evident. Here we address the key questions from clients about how to assess the situation and what happens next.
