Subprime Holdings Damp China Bank Profits

Chinese banks reported increased profits in 2007, but they’ve suffered in recent months as a result of the U.S.’s subprime-mortgage . From Reuters Via Financial Times :

Industrial & Commercial Bank of China and Bank of China posted higher fourth-quarter profits on Tuesday, buoyed by the country’s surging economy, but the state giants were dragged down by holdings in US subprime-related .

After a bumper 2007, Chinese banks are expected to face a tougher in 2008 as imposes curbs on lending and takes other steps aimed at heading off resurgent . , the country’s flagship foreign exchange lender, said held about $5bn worth of subprime-related asset-backed securities at the end of 2007, and booked a $1.3bn provision to cover potential losses on its US subprime-related securities.

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