$297m in Lehman debt held

At least three large Chinese commercial banks have disclosed their exposure to the worsening US financial crisis through bonds issued by investment bank Lehman Brothers, which has filed for Chapter 11 protection.

China Merchants Bank yesterday said in a statement to the Shanghai Stock Exchange that it holds $70 million of Lehman Brothers bonds, of which $60 million is senior debt and the rest subordinated debt.

The bank also said it has not made special provisions for the book losses on those bonds and will evaluate their potential risks and disclose further details at a later date.