With word of new bad loans at China Construction Bank (CCB), officials had to tell prospective investors the bank would not be receiving government bailout cash after the bank goes public. Last December, CCB and the Bank of China each got US$22.5 billion, drawn off the mainland's foreign-exchange reserves to write off non-performing loans to clean up their books ahead of market listings. As reasonable as the new no-bailout rule might appear, analysts said investors could end up demanding a lower valuation.
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