HONG KONG (Reuters) - Chinese banks exposed to U.S. subprime holdings are also facing woes at home as government tightening measures crimp loan growth and borrowers in key sectors risk defaulting as the weakening global economy takes its toll.

Bank of China's (3988.HK: Quote, Profile, Research) US$7.9 billion in subprime exposure is the most glaring on a lengthening list of worries that also includes a sharp sell-off in the domestic stock market and slower growth in interest margins and fee income.

The worsening outlook has prompted Beijing to sound repeated warnings over a sector that had been a favorite among local and foreign investors as a surrogate for the country's scorching growth since the first Chinese lenders went public in 2005.

Shares in China's four biggest listed lenders have fallen by roughly 40 percent since reaching highs at the end of October.

Jiang Dingzhi, vice chairman of the China Banking Regul...

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