Lehman Brothers Holdings Inc. (LEH)

"2 more Chinese banks disclose Lehman exposure
Monday September 22, 1:14 am ET

China's Construction Bank, CITIC Bank reveal Lehman debt, raising Chinese total to $634.8M

BEIJING (AP) -- Two more Chinese banks have reported holding Lehman Brothers bonds, raising total Lehman debt disclosed by Chinese lenders to $634.8 million.

China Construction Bank Corp., the country's second-largest commercial lender by assets, said in a statement issued through the Hong Kong Stock Exchange that it holds $191.4 million in Lehman bonds. That was the biggest exposure reported so far for a Chinese bank to the failed Wall Street house.

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A midsize lender, China CITIC Bank Corp. said in a separate statement it has $76 million in Lehman bonds.

Analysts say the impact of Lehman's failure on Chinese banks should be limited.

Other state-owned banks have reported holding Lehman debt but say it accounts for only a tiny fraction of their assets.

China's biggest lender, Industrial & Commercial Bank of China Ltd., says it owns Lehman bonds worth $151.8 million.

Construction Bank's Lehman holdings are 0.29 percent of net assets and should have no effect on its financial position, the bank said. It said the bank would make allowances for possible losses.

Bank of China Ltd., the country's No. 3 lender by assets, says it owns Lehman bonds worth $75.6 million. Bank of Communications Ltd., the country's fifth-largest commercial lender, says it has $70 million in Lehman bonds.

Another midsize lender, China Merchants Bank Ltd., says its Lehman bonds are valued at $70 million.