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Trading in Bank of China suspended in Shanghai
2008-01-22
Trading in Bank of China was suspended on the Shanghai stock exchange on Tuesday, amid reports it could announce a significant writedown over assets linked to US subprime mortgages. China's third largest bank is expected to announce a writedown on its 7.95 billion US dollars of investments in securities linked to US subprime mortgages, Hong Kong press reported Monday. Senior banking regulators have warned Beijing that Bank of China as well as the Industrial and Commercial Bank of China and China Construction Bank, would have to make provisions for all their subprime-linked assets, the reports said. Bank of China stock has slumped since Monday on the newspaper report but the bank said Tuesday it was "not aware of any reasons for such movement," according to a statement filed with the Hong Kong Stock Exchange. The Shanghai Stock Exchange did not provide further details regarding Tuesday's suspension. An official with the lender only said it was reviewing its subprime investment portfolio and it was too early to talk about the financial results. Hong Kong-listed shares of Bank of China fell 0.29 dollars (0.03 US cents) or 8.61 percent to 3.08 in Tuesday after losing 6.39 percent on Monday. Shanghai-listed shares Bank of China tumbled 4.14 percent to 6.25 yuan (0.85 US cents) on Monday.
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