China 'long-term investor' in European debt market

16th June 2011, Comments 0 comments

China said Thursday it was a "long-term investor" in the European debt market and hoped eurozone nations would achieve stable growth, as Greece teetered on the brink of defaulting on its loans.

"China is a long-term investor in the European securities market," foreign ministry spokesman Hong Lei told reporters.

"We hope Greece can realise stability and development through cooperation between the EU and the international community. We hope the relevant countries will realise stable economic growth."

Asian stock markets tumbled on Thursday as the eurozone debt crisis came back to the fore.

Greece warned Wednesday it would be unable to pay next month's bills without a 12-billion-euro ($17 billion) loan installment from the European Union and International Monetary Fund, part of a broader 110-billion-euro bailout agreed last year.

China has repeatedly expressed its confidence in the eurozone economies, and has invested an increasing portion of its world-leading foreign exchange reserves in euro-denominated assets.

Since December, China has pledged to buy government bonds from struggling Spain, Greece and Portugal.

Hong said Premier Wen Jiabao would visit Britain, Germany and Hungary from June 24-28.

© 2011 AFP

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