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Bad Mortgages Surged In 2022

CHINA PRESS
MNI (Singapore)

Chinese lenders recorded a surge of bad mortgages in 2022 as some developers failed to deliver new houses and the overall economy faced difficulties, China Business Network reported Friday. According to annual reports of 12 listed banks, newer mortgages underwater jumped by CNY47 billion in 2022, compared to only CNY3.3 billion in 2021. As one of the safest assets for lenders, the higher bad loan rate raises concerns, the report said. Outstanding mortgages of 25 listed banks rose 2% y/y in 2022, much lower than 11% in 2021. Several banks have said previously they will focus mortgages in large cities to reduce risk.

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