China's authorities have called emergency meetings with banks amid a growing number of homebuyers in the country refusing to service their mortgages on stalled construction projects, sources said.
The Ministry of Housing and Urban Development met with financial regulators and major Chinese banks this week to discuss the boycott, according to sources with financial news outlet Bloomberg.
Behind this is the concern that other buyers could follow the example.
An immediate solution was not found, it said.
Local regulators and banks have been instructed to submit reports on the impact as well as on the projects affected in each administrative zone.
According to the information, some banks are planning to introduce stricter conditions for mortgage loans in risky areas.
China's housing ministry did not immediately respond to a fax from Bloomberg asking for comment.
Recent reports of rising non-payments have caused Chinese bank stocks and property developer bonds to fall.
This reflects concerns that the country's housing crisis could spill over into the financial system and trigger social unrest.
China's banks are already struggling with liquidity bottlenecks at property developers.
Now there is also a threat of increased payment defaults among buyers of residential real estate.