Monday, January 28, 2008
Will Subprime Crisis Cool China Growth?
"Rumors were that they could write off $2 billion," said Todd Lee, managing director of the Greater China group at Global Insight.
The U.S. subprime crisis may be able to help accomplish what China's central bankers have yet to do -- rein in China's banking industry and its fast-pitched economic growth and inflation. Adding to recent reports of a big subprime write-down at Beijing-based Bank of China Ltd. (601988.SH), a Chinese senior economist on Tuesday said he expected rising nonperforming assets at China's biggest lenders, fueled by their subprime exposure and tighter domestic credit.