Chinas Major Banks Start Selling Homes Directly, Triggering Market Shock

Residential buildings under construction by indebted real estate developer Vanke in Hangzhou, Zhejiang Province, China, on March 15, 2024. STR/AFP via Getty ImagesMany Chinese banks have recently accelerated efforts to directly sell foreclosed properties, drawing significant public attention. After repossessing the homes through judicial procedures, banks are bypassing the traditional auction process and selling them directly online, sometimes at half of their appraised value.Chinese state media has acknowledged the surge of bank-owned homes entering the market, with news reports naming several major lenders, including the Agricultural Bank of China, China Construction Bank, and the Bank of Communications, which are offloading unprecedented volumes of distressed properties.