China Weighs Mortgage Grace Period to Appease Angry Homebuyers

The video discusses the potential impact of a mortgage payment boycott in China, which has spread to over 80 cities and involves more than 200 projects. Regulators are considering allowing a payment holiday to prevent credit score damage. The Chinese government is under pressure to act to prevent a banking crisis. Potential interventions include extending credit to developers and local governments taking over projects. The Chinese Central Bank has injected liquidity to maintain market stability. Risks include a significant amount of unpaid mortgages, which could threaten the banking system if not addressed.

What is the estimated amount of mortgages on which payments have stopped in China?

Discuss the implications of social stability in relation to the mortgage crisis in China.