The credit risk of Chinese households: A micro‐level assessment

Using three waves of the China Household Finance Survey (CHFS), we present basic facts about indebtedness and financial fragility households in between 2011 2015. We show how total debt mortgage (LTV) are distributed among different income groups, they change over time. Our stress tests suggest that Chinese higher quintiles, despite huge increase household indebtedness, not vulnerable to declining incomes or falling house prices, while low-income face high vulnerability struggle meet their commitments. However, participation rate market is low, mainly held by wealthier higher-income households. results systematic default risk moderate.