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Article: China sees subprime crisis trap big banksLargest lenders hold billions in securities backed by mortgages
- Article from:
- International Herald Tribune
- Article date:
- August 25, 2007
- Author:
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David Lague
International Herald Tribune
08-25-2007
After appearing immune to the turmoil unleashed on world markets from high-risk home lending in the United States, China suffered its first serious setback Friday from the meltdown in subprime loans.Investors punished China's flagship lender, Bank of China, after it disclosed the biggest exposure revealed so far of any bank in Asia to this segment of the U.S. mortgage market.Shares in the bank, the second-largest in China, fell 5.4 percent to close at 3.87 Hong Kong dollars, or $0.50, after it reported holding almost $9.7 billion in securities backed by subprime mortgages.That is about 3.5 percent of its total securities ...