China and the Subprime mess

The answer is absolutely not on either count. Various Chinese banks do have exposure to sub-prime debt- although this is low, for instance. As reported, Bank of China holds U$9 billion in subprime mortgage-backed bonds and $682 mn in CDOs. ICBC holds $1.2 billion in mortgage-backed securities,

Even if China’s markets are closed and thus shut off from Ame…