Subprime impact on China reported

We finally got some news from China regarding the spreading subprime issue. The sub-prime crisis hit China’s flagship lender yesterday as Bank of China wrote down $322m (£156m) for its holdings of US sub-prime mortgage securities.

The state-run bank has the biggest exposure to the US sub-prime meltdown, with about $7.9bn of asset-backed bonds and collateralised debt obligations (CDOs). It had already taken a $153m charge on those assets in the first half of the year.