China unaffected by subprime mortgage crisis

by Richard Kilner

Story link: China unaffected by subprime mortgage crisis

The US subprime mortgage crisis has had only a minor impact upon China, according to Chinese banking chiefs.

The reason for the low impact of the major crisis in the US is because Chinese banks are not particularly exposed to the lending market, said President Yang Kaisheng of the Industrial and Commercial Bank of China.

Yesterday afternoon the National Committee of the Chinese People’s Political Consultative Conference, of which Kaisheng is a member, opened its annual full session.

Jiang Chaoliang, board chairman of Bank of Communications, believes that despite China’s minimal involvement in the subprime mortgage crisis and ensuing credit crunch the country’s banking sector can still learn valuable lessons from the fiasco, particularly in risk management.