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China Pledges Continued Support for European Debt

by Open-Publishing - Monday 27 June 2011

Economy-budget International Europe

China Pledges Continued Support for European Debt

26/06/2011

Chinese Premier Wen Jiabao on Saturday said China will continue to buy euro-denominated bonds to support Europe, in China’s latest public endorsement of the efforts to contain a potential debt crisis in the common currency area.

The remarks by Mr. Wen, who was in Budapest on a five-day European tour that will also take him to London and Berlin, came as European leaders wrangle over mechanisms to provide fresh financing to Greece and head off a potentially destabilizing default by the country. Many European leaders see Chinese support as a key booster for market confidence in their sovereign finances, as well as a sign that China could diversify more of its massive foreign-exchange reserves into euro-denominated assets...

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