Chinese banks hit badly with American subprime mortgage losses – time to sell Chinese bank stpcks?
Peter Oberois
Mar. 25, 2008

Beijing imposed curbs on lending and takes other steps aimed at heading off resurgent inflation. The oulook for Chinese banks is not that great for 2008.

Bank of China said it held about $5 billion worth of US subprime-related asset-backed securities at the end of 2007. It had to take a $1.3billion provision to cover potential losses on its US subprime-related securities.

Other Chinese banks also lost big from US subprime losses. China’s economy will moderate in growth this year. China will continue to raise interest rates. Yuan will also continue to appreciate against US Dollar. The net effct on the Chjinese banks is dicidedly negative.

Should Chinese banks stocks be sold? It is possible that they have seen an intermediate term highs already, say some analysts.

Chinese banks hit badly with American subprime mortgage losses – time to sell Chinese bank stpcks?
Peter Oberois
China will continue to raise interest rates. Yuan will also continue to appreciate against US Dollar. The net effct on the Chjinese banks is dicidedly negative.
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