China Construction Bank, one of the country’s Big Four state-owned lenders, said on Thursday that its exposure to property projects whose construction has been suspended and home deliveries delayed is relatively small and the overall risk is controllable.
The bank didn’t provider more details about how many property projects the bank is involved are in suspension.
CCB will closely watch the situation of property developers it’s cooperating with and the projects it’s involved in and coordinate with local governments to provide better services to its client, the bank said.
The bank’s statement came after more and more home buyers across China refuse to pay mortgages as the properties they purchased have been left unfinished amid the liquidity crunch in the real estate sector. Read more …
The bank’s shares are falling 1.4% in Shanghai, as of 1:22 pm, local time, and its Hong Kong-traded shares are down 1.2%.