China banks deny Dubai problems

Industrial and Commercial Bank of China, the country’s biggest listed lender, said it has no exposure to bonds issued by Dubai World.

Bank of China, the country’s third-largest, does not hold bonds issued by Dubai World, the Dubai government or any Dubai sovereign funds and related institutions. The bank’s overseas branches do not have direct credit business relationship with Dubai World.

Bank of Communications, the country’s fifth-largest, said it does not have exposure to Dubai World credit and bonds.

China Construction Bank the country’s second-largest bank, said its investigation is underway.

Dubai said on Wednesday it was asking for a six-month reprieve on paying Dubai World’s debts as a first step to restructuring the company.

 

Shanghai Daily reported that market observers said if Dubai should prove unable to pay the debts, many of the world’s leading banks will suffer losses.