HONG KONG -- Chinese banks are facing a new earnings challenge as growing numbers of homebuyers pay off their mortgages ahead of schedule, threatening lenders with the loss of years of anticipated interest income.
The scale of mortgage repayment activity and the ultimate revenue impact is hard to glean from official data, but anecdotal evidence suggests that it has been increasing in recent months as borrowers cash out of disappointing investments or raise funds by taking out lower-rate business loans.
