From Financial Times:
Chinese state lenders, including the Bank of China, are expected to announce losses from their exposure to the US subprime lending market when they release their first-half results in the coming weeks.
But the exposure of China, both in terms of the government’s hundreds of billions of dollars of US dollar holdings and the overseas investments of its commercial banks, appears relatively limited. If China can contain the fallout from the subprime crisis spreading through financial markets in the west, the government will be able to thank its conservative state investment policies and maintenance of capital controls. [Full Text]