Effect subprime, Bank of China already ¹ Hon Kong

25 Aug

Posted by flicker as Bank of China, News, News from the world

Stock-market crash of the title of Bank of China (-6.36%) after the title has touched - just 8.1% due to the direct consequence that the giant credit rating of 'former British protectorate with its exposure in Hector subprime. In fact, the second Chinese bank had invested about 9.7 billion dollars in structured bonds and guaranteed by mortgages and real estate risk Americans ato nonosatante increased profits by 52% with 29 billion yuan in the first half. the amount invested by the Bank of China rappresentauna Enore figure even if compared to a treasury of 770 billion giant whose disputes dollaridi bancario.Il shares, in June 2006, this year ¨ Ã already down 10%. Investors have put in place to reassure doubted, and which were based primarily on the fact that the assed-backed securities of all involved will enjoy high ratings, with the minimum of the double A, and little notes have led Fitch to make the evaluations on the bank: A-for long-term debt with a positive outlook, F2 for short, D for the individual and 1 for the support. Also, the decision to set aside 1.15 billion yuan (about 152 million dollars) in defense of possible losses arising from securities held in the markets for asset backed securities and CDOs (Collateralized Dept Obbligations) products, in addition to derivatives from loans plus other real estate-backed securities on mortgages or commercial loans to companies) has not encouraged investors. Warre Blight, an analyst at Fox-Pitt Kelton said: "Bank of China has revealed figures that investors would never feel heard. Ã ¨ The market in shock about the level of 'exposure'. Another giant of the credit of China, Industrial and Commercial Bank of China, ranked first for the market value, has accused the subprime exposure to $ 1.2 billion.