BOC Shares Drop Below IPO Price
March 20th, 2008In Wednesday trading the Bank of China shares listed in Hong Kong briefly sank below their issuance price for the first time. Citic Bank’s A shares have also depreciated substantially in recent months (about 40%). PRC press coverage here notes the sub-prime write downs in the US have erased lots of value from US financial stocks as well.
March 27th, 2008 at 11:30 am
As the credit crisis becomes America’s top export, we will see more global ramifications. Imagine if Citic had put the billion into Bear a week before. The reason the US dollar denominated investments were once like gold, a refuge from global crises, is that our markets were always opaque and liquid. The recent subprime based CDO’s are neither. This has tarnished our markets and the dollar for a long time to come.