Additional Fiscal Support Needed To Limit Mortgage Defaults

Fiscal authorities should take measures to support people’s livelihood and counter the reduction in household income that has triggered increasing mortgage defaults, said Sheng Songcheng, previously head of the statistics and analysis department at the People’s Bank of China, in an article on China Business Network. Although real estate regulations have been relaxed and more bank loans have been offered to developers, the effects have yet to be seen at an obvious pace given the impact on incomes from the pandemic, he noted. Since China faces an uncertain Covid situation, additional fiscal support targeting household incomes should be made to boost the economy and stabilise the property market, Sheng pointed out.