10/15/2021- 6:46 a.m.
EVERGRANDE CONTAGION: China Eases Mortgages for Rest of the Year (Bloomberg Report)
China is loosening restrictions on home loans at some of its largest banks, apparently adding to signs of growing concern by authorities about contagion from the debt crisis at China Evergrande Group.
Financial regulators told some major banks late last month to accelerate approval of mortgages in the last quarter, according to Bloomberg sources.
Lenders reportedly also permitted to apply to sell securities backed by residential mortgages to free up loan quotas, easing a ban imposed early this year.
Fears of risks spreading outwards intensified over the past two weeks after a surprise default by Fantasia Holdings Group Co. and a warning from Sinic Holdings Group Co. that its default was imminent.
