UPDATE 1-Bank of China calls US agency exposure manageable

(Adds details, background)

BEIJING, July 23 (Reuters) - Bank of China's (3988.HK) (601988.SS) exposure to troubled U.S. mortgage lenders Fannie Mae (FNM.N) and Freddie Mac (FRE.N) is manageable, the bank's president, Li Lihui, said on Wednesday.

Bank of China, the country's third-largest lender, may hold roughly $20 billion worth of bonds issued by the two firms, according to a research note issued last week by analysts at CLSA.

Li declined to give details of Bank of China's exposure ahead of the release of its first-half earnings next month.

But he told a news conference when asked about the bank's exposure: "I think the risks in this respect are completely controllable."

Bank of China is the country's flagship foreign exchange lender and has the biggest overseas exposure among the country's lenders. CLSA estimated that its Hong Kong unit, Bank of China Hong Kong (2388.HK), has $1.3 billion in Fannie and Freddie exposure.

Li added that Bank of China is open to making acquisitions overseas and is currently considering possible opportunities, but he did not give further details. (Reporting by Zhou Xin; Writing by Alan Wheatley; Editing by Anne Marie Roantree)