A Study On The Performance Of Mortgages Bond Securities In China

There are two kinds of factors limiting the broader use of mortgages in developing countries. The first is the regulatory process of registering and transferring the mortgages, which often has a local law component. The second is the development of the credit assessment skills and capital market access that lenders require to do profitable mortgage lending.From a policy point of view expanding the use of housing mortgages in developing countries would provide additional credit to residents and may increase real estate related and other business activity as well. For bankers it is obviously a way to invest, earn fees and build traditional banking relationships..In the 1990's in China there began a privatization process which has encouraged investment in housing renovation and in economic growth, as the owners are willing to spend money to improve their living situations. There are government policies as well that support the expansion of average living space per person and development of new housing that has actually led to a temporary excess supply in some places, particularly of luxury housing.