In china, the world's largest manufacturing country, people have said that they cannot pay the EMI amount for home loans. It has caused a great shock. china is already facing the worst impact amid Corona, production decline, and distribution disruption, now the worst impact of real estate is surrounding China.
China's real estate industry has been facing a steep decline over the past year. Since the failure of Evergrande, the Chinese state, and private banks have not provided adequate credit to the real estate sector. As a result, the construction sector, which was once a major trade sector for the Chinese economy, has suddenly gone into a bad state..jpg)
In this case, the Chinese people, realizing the severity of the problem, have announced that they will not be able to pay EMIs for loans taken for construction projects that are not yet completed. As a result, the entire real estate and banks are left in the dark.
Fears have gone beyond a decline in Chinese people's confidence in the real estate industry. china Real Estate Information Corp has announced that people have reported that they are unable to pay the EMIs for loans for more than 100 uncompleted projects in more than 50 cities.
The number of companies facing such problems was 28 on Monday, rose to 58 on tuesday and 100 on Wednesday, according to Sujin Chen, a market analyst at Jefferies. Real estate companies will only receive money from banks for construction if Chinese people pay off their housing loans. Now that this chain is broken, all the projects that are being built will fail. If these 100 projects accounted for just 1 percent of China's total debt, China's bad debt would rise to $58 billion. This will inevitably turn the Chinese market upside down.
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