China Central Bank's Yi Says China to Remain Long-Term Investor in Europe
By Zijing Wu and Eddie Buckle - Jan 12, 2011 4:59 PM GMT+0100 Wed Jan 12 15:59:33 GMT 2011
China is a long-term investor in European financial markets and will continue that policy, People’s Bank of
China Deputy Governor Yi Gang said.
“We do have confidence in European financial markets and the euro,” Yi said at a briefing in
London today. “We will be here for a very long period of time. China has been a long-term, stable investor in
Europe.”
Vice Foreign Minister Fu Ying told the briefing China has bought Spanish bonds and will continue to purchase them. Yi’s and Fu’s comments were previously reported by Reuters and confirmed by the Chinese embassy in London.
Chinese Vice Premier Li Keqiang said last week his government will continue to buy Spanish public debt even as the European country’s borrowing costs soar on concern the nation won’t be able to fund itself. Li led the visit by the Chinese delegation to Britain this week.
The Chinese statements came as European governments are considering aid for Spain’s neighbor Portugal, debt buybacks, lower interest rates on rescue loans and guarantees against excessive debt as part of a package to quell the financial crisis, according to four people with direct knowledge of the talks. Greece and Ireland received financial aid last year.
Japan may extend purchases of bonds sold by Europe’s financial aid fund in coming months to support the region’s recovery from the sovereign debt crisis, two government officials familiar with the matter said today.
Yi said today China would take “into positive consideration” investment in the European emergency fund, which was set up after the Greek fiscal crisis, Reuters reported.
(Bloomberg)
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