Financial regulators have asked China's financial institutions to submit
detailed records of their investments in the US and European financial assets to
ascertain the full extent of their exposure to the US financial crisis.
The China Banking Regulatory Commission, China Insurance Regulatory
Commission and the China Securities Regulatory Commission reportedly made the
request to financial institutions under their supervision.
At least six Chinese commercial banks have reportedly disclosed their
holdings of bonds issued by US investment bank Lehman Brothers, which has filed
for bankruptcy protection.
Industrial and Commercial Bank of China has said it holds 151 million U.S.
dollars in bonds issued by or linked to Lehman. China's largest State-controlled
commercial bank in terms of assets is known to have the highest exposure to
securities associated with Lehman.
On Tuesday, China Merchants Bank said in a statement to the Shanghai stock
exchange that it holds US$70 million worth of Lehman bonds, out of which US$60
million is senior debt and the rest subordinate bonds.
A day later, Bank of China said it holds Lehman bonds worth US$75.62 million,
and has lent out US$53.2 million to Lehman and its subsidiaries.
The three other commercial banks that have reportedly invested in
Lehman-related assets are China Construction Bank, Bank of Communications, and
Industrial Bank Co.
The only known Chinese insurer holding substantial foreign assets is Ping An,
which has a 4.18 percent stake in Fortis, one of the largest European insurance
conglomerates.
