Chinese government rolls over $ 30 bn of bonds related to bailout of China Cons. Bank

Discussion in 'Wall St. News' started by ASusilovic, Sep 23, 2009.

  1. The Chinese government has extended the maturity of bonds used to bail out one of the country’s largest banks in an accounting move that further delays resolution of China’s decade-long banking crisis. China Construction Bank, the world’s second-largest bank by market cap, said on Tuesday the finance ministry had issued an order for Rmb247bn ($36bn) worth of 10-year bonds on its balance sheet to be rolled over for another 10 years. The move comes amid concerns about a new wave of bad loans emerging from a government-led lending binge this year.