China Merchants Bank Co. said Monday that, as of the end of June, it held $180 million of debt issued by Fannie Mae and Freddie Mac.
Of the total, $110 million was from Fannie and $70 million from Freddie, said China's sixth-largest lender by assets.
In addition, the Chinese lender held $75 million worth of mortgage-backed securities guaranteed by the two government-sponsored enterprises.
China Merchants also said the overall $255 million investment, which equals no more than 1% of its bond portfolio, had a minimal effect on its earnings. It said it has an unrealized gain of $830,000 on the investment.
It was the first Chinese bank to disclose its exposure to Fannie and Freddie.
