Bush, Hu discuss global financial crisis

Beijing: United States President George W Bush discussed the global financial crisis with Chinese President Hu Jintao over the telephone on Monday, China News Service reported.

The state-run news agency said the two leaders spoke at Bush's request.

"We have noticed that the United States has taken some important measures to stabilise the domestic financial market, and we hope these measures can achieve quick results so that economic and financial conditions in the United States will gradually improve and turn better," the news agency paraphrased Hu as saying.

The conversation comes at the end of a weekend of intensive talks in Washington between Bush's administration and Congress to hammer out details of an unprecedented $700 billion bank bailout to aid the plunging economy and prevent further financial turmoil.

Hu said the US plan was in the interests of both the United States and China.

"It is also conducive to maintaining international financial market stability in order to promote the stable and healthy development of the world economy," China News Service paraphrased Hu as saying.

Seven Chinese banks have reported exposure of more than $700 million to failed investment bank Lehman Brothers. Lehman also guaranteed $500 million in structured notes held by a Chinese overseas investment fund.

China has much at risk in the event of a US financial crash.