China supports oversea takeovers by banks

--China supports plans by the nation's largest banks including Industrial & Commercial Bank of ChinaLtd. to acquire overseas rivals whose shares have fallen amidthe U.S. mortgage market collapse, the industry regulator said. --In China, raw-material companies that export heavily, industries plagued with overcapacity, and those that are heavypolluters and consumers of energy will ``likely get intodifficulties or even recession'' this year or in 2009, Liu said.Tighter loan curbs will increase the risk of defaults and assetprices will probably decline, reducing the value of mortgages,he added. --