In China, a major financial crisis is unfolding slowly. Chinese citizens in 86 cities are boycotting mortgage payments towards their homes.

China’s lehman movement

A major boycott is underway, the citizens are defaulting on loans. Home buyers declare “Mortgage Strike” on 230+ projects. Banks asked to disclose the true extent of bad debts. Is the next Global financial crisis brewing in China?

In 2008 the global economy crashed. The world changed forever. In america lehman brothers has collapsed. The bank was holding a giant pile of bad debts.

Mostly bad housing loans

There was an international banking crisis. It gave the world the recession.

14 years later now the financial crisis is brewing in china but the world knows very little about it.

Thousands of home buyers have stopped paying their EMIs because they say, they’ve not got their homes. They will not payback their loans. China has asked its banks to produce a list of bad debts.

The money was lent out for the property sector first leading the developers default. Now the home owners are willfully defaulting on their loans.

China could start a financial pandemic.

In the month of april, 4 banks in china stopped withdrawals. Meaning, people who have deposited money in this banks could not withdraw. The people struggled for months. They protested and chinese banks responded with fierce crack down and tried their best to crush the protestors but they failed to silence the protestors.

China’s banking regulator has now relented, it will compensate these depositors in the capital province of Henan. It’s a massive claim down for the chinese state and a huge win for the people.

But our story does not end there,

In fact, it just begins

Debt worth of 9.2 trillion dollars, this money was given out to the distressed property sector of china. Mostly to home buyers. But now the money is not coming back. Because people has not got their homes. So they’ve stopped paying their EMIs. The scale of the problem is massive. This is the mortgage crisis, the mortgage revolt in china.

This impact could be global.

The most of the projects were begun by developers who defaulted. China Evergrande Group led the pack, accounting for an estimated 35% of the total projects that faced mortgage revolts.

We are already in a pandemic from 2020!

Hope it doesn’t affect our economy like Covid does.