Chinese Bank Shares Fall Sharply
Shares in China's banks fell sharply Monday after news reports said its No. 2 lender, Bank of China, might write down holdings of U.S. mortgage securities and two others increased reserves for possible losses.
The reports were the first indication that Chinese lenders, which have so far avoided damage from the U.S. credit crisis, might face problems due to their holdings of subprime securities.
Also Monday, China's banking regulator warned that lenders might face risks from fluctuations in fast-rising real estate prices.
Bank of China is expected to announce a "significant writedown" on its $7.95 billion in U.S. subprime mortgage securities, Hong Kong's South China Morning Post newspaper reported, citing unidentified sources.
The reports were the first indication that Chinese lenders, which have so far avoided damage from the U.S. credit crisis, might face problems due to their holdings of subprime securities.
Also Monday, China's banking regulator warned that lenders might face risks from fluctuations in fast-rising real estate prices.
Bank of China is expected to announce a "significant writedown" on its $7.95 billion in U.S. subprime mortgage securities, Hong Kong's South China Morning Post newspaper reported, citing unidentified sources.
Labels: Asian Markets, Asian stocks, China Banks, China stocks, Chinese Banks, Chinese Stocks
posted by Stock Administrator @ 2:29 PM
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