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Strategies & Market Trends : True face of China -- A Modern Kaleidoscope -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (3720)	7/16/2008 11:39:42 PM
From: RealMuLan	Respond to of 12464

China banks exposure to Fannie Mae/Freddie Mac 30 bln usd - report 09:01 Xinhua Newsfeed quamnet.com HONG KONG (XFN-ASIA) - Mainland lenders may have more than 30 bln usd of exposure to troubled US mortgage giants Fannie Mai and Freddie Mac, the South China Morning Post reported. Bank of China's holdings of securities issued by the two torubled US groups may amount to 20 bln usd, or about 2.6 pct of total assets, the highest among mainland banks, according to CLSA research. Other banks likely to be in a similar position arer China Construction Bank and China Merchants Bank, the report said. If the numbers are confirmed, their exposure would be higher than the 12 bln usd worth of subprime mortgage securities that mainland lenders disclosed previously. It is unlikely the lenders will significantly write down these assets as the bonds are considered lower risk and implicitly guaranteed by the US government, the report added. (1 usd = 7.8 hkd) roby.lau@xfn.com