The Development Of China's Housing Mortgage And Risk Control

Mortgage loans have blossomed up in China since 2000, which is only two years later when it first appeared in 1998 in our country. The abnormal developing speed of mortgage loans is first attributed to the rapid increase of housing needs from Chinese citizens and the thorough change of their consumption concepts. The second engine of mortgage loans'development is generated by banks in China, who have taken these loans as eximinious asset and tried every mean to grow them. According to the international conventions, the risk exposing period of mortgage loans is 3 to 8 years, which indicates that many domestic mortgage loans are facing with high risks now. Actually, the index points of the absolute amount of ill loans and their percentage in bank loans are both on rise. It is predictable that the risk exposing of mortgage loans will continue due to the extensive management of these loans at the early stage. As the level of marketization rises, the"security"of mortgage loans comes together with risks from policies, market, banks and pledged staff. Therefore, Defensing risks will be a must to the sustainable development of mortgage loans. As a result, it is urgent theoretically and practically to find out solutions to deal with the risks of mortagage loans. This paper presents systematically the birth and growth of mortgage loans as well as the creative develpments of various categories of these loans. It also analyses the market needs of and the problems involved in mortgage loans in China. Through case analysis, this paper induces different risks generated by mortgage loans. The author then employs statistcal method, econometric method and game theory to discuss these risks and the suitable solutions to them.