Exposure to subprime debt limited

The impact of the US subprime crisis on Chinese banks will be limited and their bottom line will not be significantly affected, the central bank governor said yesterday.

But Zhou Xiaochuan warned that vigilance was necessary as many uncertainties still exist about how the debt crisis will unfold and what impact it will have on China, which faces mounting inflationary pressure.

"There will be further indirect impact from the US subprime mortgage crisis on China's economy. It cannot be underestimated since what lies ahead is far beyond our experience," he told a press conference on the sidelines of the annual session of the National People's Congress, the top legislature.