Beware of Chinese debt
China has hidden borrowing. It was almost impossible for the Chinese to get mortgages therefore money to buy property was raised from illegal loan sharks thus pushing the price of properties high. A crackdown on illegal lending has made property prices drop by 60%. The property slump has affected those with legitimate mortgages and Banks want to foreclose because they are jittery about negative equity.
China has hidden borrowing. It was almost impossible for the Chinese to get mortgages therefore money to buy property was raised from illegal loan sharks thus pushing the price of properties high. A crackdown on illegal lending has made property prices drop by 60%. The property slump has affected those with legitimate mortgages and Banks want to foreclose because they are jittery about negative equity.
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