China’s deflating property bubble is imperiling the world’s second-largest economy with effects that could ripple for years. Home prices are dropping in many cities after a long period of increase, data from Chinese real-estate developers and official statistics show. Sales of apartments nationwide by the country’s largest developers have slumped annually for 13 consecutive months, according to industry-data provider China Real Estate Information Corp. And millions of “presold” apartments that buyers have paid for remain unfinished, leading some purchasers to threaten to withhold mortgage payments. Home buyers could refuse to pay back up to $370 billion in home loans if their apartments aren’t finished, analysts estimate. Most Chinese banks, they say, should be able to absorb the losses, making a financial crisis unlikely. The bigger risk is to China’s economy. Bank of America research […]