This Month: Main News - China's Citic Keen On Stake In 'bargain' Bear Stearns.

Banker, The, November, 2007

China Citic Group, the overseas investment banking arm of the Chinese government, has announced its interest in acquiring a stake in Bear Stearns, the New York-based bank that has been severely hit by the troubles in the US subprime market. The interest highlights the growing ambitions of Chinese financial companies.

Due to US mortgages losses, Bear Stearns' market value has declined 26% this year to $17.4bn in mid-October, making the investment bank worth less than half of Citic's brokerage arm, Citic Securities.

Some analysts consider Bear Stearn a bargain but they also warn that the subprime crisis is not over yet and that valuations might fall further.

The Chinese bank is not the only one eyeing up Bear Stearns. Citic may face...

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