Risk Evaluation for Chinese Families’ Housing Assets

18 Pages Posted: 6 Apr 2017

See all articles by Jing Li

Jing Li

The Chinese University of Hong Kong

Date Written: April 5, 2017

Abstract

The lessons from the US Subprime Mortgage Crisis have rich implications for understanding Chinese families’ potential asset depreciation risks. Based on a national household survey and macroeconomic data, this study examines Chinese families’ financial leverage of housing assets. Survey analysis reveals that Chinese families mainly buy properties in cash, and do not have high proportion of financial assets. However, the rise of informal finance due to major commercial banks’ shortage of liquidity may have substantial impact on households’ borrowing conditions.

Keywords: Financial Leverage, Housing Asset, Family Wealth

Suggested Citation

Li, Jing, Risk Evaluation for Chinese Families’ Housing Assets (April 5, 2017). Available at SSRN: https://ssrn.com/abstract=2946877 or http://dx.doi.org/10.2139/ssrn.2946877

Jing Li (Contact Author)

The Chinese University of Hong Kong ( email )

Shatin
N.T.
Hong Kong

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