01-22-2008, 05:33 AM
<b>Chinese Bank Shares Fall Sharply</b>
<i>Chinese Bank Shares Fall Sharply on Reports Lenders Facing Possible Subprime Writedowns </i><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Also Monday, China's banking regulator warned that lenders might face risks from fluctuations in fast-rising real estate prices.
Bank of China is expected to announce a "significant writedown" on its $7.95 billion in U.S. subprime mortgage securities, Hong Kong's South China Morning Post newspaper reported, citing unidentified sources.
Bank of China spokesman Wang Jianping declined to comment. He said the bank would release details of its assets in late March when it announces annual earnings
<!--QuoteEnd--><!--QuoteEEnd-->
Americans are buying houses and enjoying expensive homes for two years which they can't afford and China is going to pay price. <!--emo&
--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo--> First time they came out with write off and this is first bank, watch more. Actual fun will start after Olympics.
Plus if you add recall effect and 2008 x-mas orders will drop.
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->. Although part of todayâs volatility could be attributed to the fear of a US recession and the lack of liquidity, the move began in Asia and was sparked by speculation that the Bank of China could be forced to write-off a fourth of its $8 billion subprime exposure. The announcement by the Chinese Bank would indicate that the mortgage mess has spread from the US to Europe and now into Asia. The world may be able to deal with a slowdown in the US economy, <b>but the combination of a material slowdown in both US and China would be too much for everyone to handle</b>. <!--QuoteEnd--><!--QuoteEEnd-->
<i>Chinese Bank Shares Fall Sharply on Reports Lenders Facing Possible Subprime Writedowns </i><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Also Monday, China's banking regulator warned that lenders might face risks from fluctuations in fast-rising real estate prices.
Bank of China is expected to announce a "significant writedown" on its $7.95 billion in U.S. subprime mortgage securities, Hong Kong's South China Morning Post newspaper reported, citing unidentified sources.
Bank of China spokesman Wang Jianping declined to comment. He said the bank would release details of its assets in late March when it announces annual earnings
<!--QuoteEnd--><!--QuoteEEnd-->
Americans are buying houses and enjoying expensive homes for two years which they can't afford and China is going to pay price. <!--emo&
--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo--> First time they came out with write off and this is first bank, watch more. Actual fun will start after Olympics.Plus if you add recall effect and 2008 x-mas orders will drop.
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->. Although part of todayâs volatility could be attributed to the fear of a US recession and the lack of liquidity, the move began in Asia and was sparked by speculation that the Bank of China could be forced to write-off a fourth of its $8 billion subprime exposure. The announcement by the Chinese Bank would indicate that the mortgage mess has spread from the US to Europe and now into Asia. The world may be able to deal with a slowdown in the US economy, <b>but the combination of a material slowdown in both US and China would be too much for everyone to handle</b>. <!--QuoteEnd--><!--QuoteEEnd-->