(Bloomberg) -- The wave of Chinese homebuyers not paying mortgages on stalled projects will add pressure to developers’ liquidity by weakening presales and restricting use of customers’ down payments, said Nomura International Hong Kong Ltd.

The refusals to pay will “likely drive stricter control over presales escrow accounts and hurt sales demand further,” credit desk analyst Iris Chen said in a note Thursday. “Mortgage issuance may also face a stricter approval process that will slow down cash collection.”

Homebuyers have stopped mortgage payments on at least 100 projects in more than 50 cities as of Wednesday, prompting emergency meetings with major banks to discuss the boycotts. As many Chinese developers have defaulted on bonds in the wake of a liquidity crunch from a yearlong sales slump and government crackdown on debt growth, officials have been focused on ensuring that sold homes get built in order to maintain social stability.

“Home delivery is undoubtedly the top priority for the government, even in the current property down cycle,” according to Chen. Borrowers not paying mortgages “will likely draw strong government attention as this actually threatens social stability,” she said.

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