BOC cuts subprime securities

Bank of China Ltd, the Chinese lender with the largest portfolio of subprime-related investments, has sold some of those securities, Chairman Xiao Gang said.

The Beijing-based bank disposed of all its collateralized debt obligations, Xiao said yesterday in Beijing. The company reported owning $7.95 billion of subprime securities on Sept 30, with $496 million in the form of CDOs. Xiao declined to disclose how much subprime-related debt the bank still owns.

"It will be in everybody's interest to find out what exactly they are holding," said Dominic Chan, an analyst at CLSA Asia-Pacific Markets, in an interview.