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Analysis: China’s safe-sounding, official mortgage loan-to-value ratio of 55 percent doesn’t account for fast-rising levels of debt for new home purchases

1 week ago
Sky Canaves
lthough the average mortgage has 45 percent of equity supporting it, according to official data, UBS estimates that the loan-to-value ratio has surged from 15 percent in 2012 to nearly 70 percent, and any sudden drop in property prices could see the number go even higher.
By Sky Canaves
Sky Canaves previously reported for The Wall Street Journal in Beijing and Hong Kong, where she covered media, culture, social issues, and legal affairs, and served as the founding editor and lead writer of the WSJ’s China Real Time site. Prior to becoming a journalist, Sky worked in the China corporate law practice of Baker & McKenzie, and she has also taught journalism and media law at the University of Hong Kong. She speaks Mandarin and has accumulated more than a decade's experience living, studying and working in China.