Chinascope recently reported that 200,000 people in China stopped making their mortgage payments (See: http://chinascope.org/archives/28823). On January 14, 2022, Professor Han Fuling from the School of Finance of the Central University of Finance and Economics posted on Weibo, “At the beginning of 2022, the four major banks sued 200,000 owners for defaulting on their mortgages.” Weibo has since removed the posting. The four major banks are the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China, and the Construction Bank.
Since the beginning of 2022, there has been more news about defaults and foreclosures of residential houses in China.
All Foreclosure Auctions are well-known online auction platforms in China. As of January 30, 2022, 1.72 million court-ordered foreclosures of residential houses were placed on the auction list.
In 2017, the number of foreclosure houses was 9,000; in 2018 it was 20,000; in 2019, 500,000; in 2020, more than 1.2 million. As of mid-December 2021, foreclosure houses in China hit a record high at over 1.68 million.
Among them, Jiangsu Province ranked first with 209,900 units, Zhejiang ranked second with 179,300 units, and Henan, Guangdong, and Shandong ranked third, fourth, and fifth.
While these are cumulative numbers, not net annual increases, an unprecedented spike is happening in foreclosures of residential houses.
Source: Xinhua Daily Media Group, January 17, 2022