Prime Minister Wen Jiabao said that China will continue to invest in Europe's sovereign bond market, offering a vote of confidence in the region résonnée by the debt crisis.
"China has increased the purchase of bonds in some European countries, and we do not reduce our euro Fund," Wen said yesterday the British Broadcasting Corp. in an interview. "I think that these show our confidence in the economy of Europe and the euro area.".
Wen, 3 billion of the country, including in foreign currency reserves are high, is now due to meet with U.K. Prime Minister David Cameron in London as European policy makers enter another week of talks on how the Greece can be avoided by default. Greek lawmakers vote this week on a package of austerity required to obtain more international aid, while elsewhere on the continent, Governments negotiate with banks on how they can help the country.
China's leader is visiting Europe as renewed investor concern the ability of the nations of the euro area – to beat the debt crisis which has occupied the minds of officials from more than a year. European stocks fell for an eighth week last week, the longest stretch of losses since 1998, and the euro weakened to a case against the Swiss franc in Greece speculation will be unable to pay its bills.
"China is ready to work with Europe to share opportunities, address challenges and achieve common development, and make unremitting efforts for stable development of the global economy and a depth of China-Europe ties," Chinese State Xinhua News Agency quoted Wen as saying that on 25 June.
Support of the Spain
This is not the first time Wen expressed a support for Europe's cash-strapped nations. He said in April that China would invest in the bonds and the Spain savings bank industry and will continue to buy debt.
The visit of Wen will help "convince the market that China will provide a back-stop contagion" and therefore lend support to the euro, Douglas Borthwick, head of Foreign Exchange based in Stamford, Connecticut Faros Trading, said in a report on 20 June.
China plays a role of "white knight" in helping Europe and itself purchase of good will to buy more sensitive European assets such as technology firms, according to Faros Trading. Asian country purchases of debt in euro also helps diversify its dollar reserves, said the dealer.
Contrast positive comments from critical Wen week last to the strategy of Europe by other international decision makers. US Secretary of Treasury Timothy f. Geithner said that the region should speak of a "clearer and more unified voice", while that the Bank of England Governor Mervyn King said that he must realize it is dealing with a solvency problem not liquidity.
Today talks in London will focus on trade, the British Government seeks to boost trade with China to 100 billion dollars by 2015, Office of Cameron said in a statement. Downing Street said the two countries also are defined to make it easier for British companies branch Beijing and Shanghai and that China will open its market to exports of poultry U.K. again.
Wen, who visited the home town of William Shakespeare, Stratford-Upon-Avon and visited a car factory owned Chinese yesterday, will also deliver a speech before you go to Germany. In Budapest, he promised to buy a "definite" Hungarian obligations and extend a loan of 1 billion $-euro ($1.4 billion) through the development of the China State Bank to fund projects in Hungary.
To contact the reporters on this story: Zoltan Simon Budapest to zsimon@bloomberg.net Simon Kennedy in London at skennedy4@bloomberg.net.
To contact the responsible editors of this story: Craig cstirling1@bloomberg.net Stirling. Balazs Penz in bpenz@bloomberg.net;
"China has increased the purchase of bonds in some European countries, and we do not reduce our euro Fund," Wen said yesterday the British Broadcasting Corp. in an interview. "I think that these show our confidence in the economy of Europe and the euro area.".
Wen, 3 billion of the country, including in foreign currency reserves are high, is now due to meet with U.K. Prime Minister David Cameron in London as European policy makers enter another week of talks on how the Greece can be avoided by default. Greek lawmakers vote this week on a package of austerity required to obtain more international aid, while elsewhere on the continent, Governments negotiate with banks on how they can help the country.
China's leader is visiting Europe as renewed investor concern the ability of the nations of the euro area – to beat the debt crisis which has occupied the minds of officials from more than a year. European stocks fell for an eighth week last week, the longest stretch of losses since 1998, and the euro weakened to a case against the Swiss franc in Greece speculation will be unable to pay its bills.
"China is ready to work with Europe to share opportunities, address challenges and achieve common development, and make unremitting efforts for stable development of the global economy and a depth of China-Europe ties," Chinese State Xinhua News Agency quoted Wen as saying that on 25 June.
Support of the Spain
This is not the first time Wen expressed a support for Europe's cash-strapped nations. He said in April that China would invest in the bonds and the Spain savings bank industry and will continue to buy debt.
The visit of Wen will help "convince the market that China will provide a back-stop contagion" and therefore lend support to the euro, Douglas Borthwick, head of Foreign Exchange based in Stamford, Connecticut Faros Trading, said in a report on 20 June.
China plays a role of "white knight" in helping Europe and itself purchase of good will to buy more sensitive European assets such as technology firms, according to Faros Trading. Asian country purchases of debt in euro also helps diversify its dollar reserves, said the dealer.
Contrast positive comments from critical Wen week last to the strategy of Europe by other international decision makers. US Secretary of Treasury Timothy f. Geithner said that the region should speak of a "clearer and more unified voice", while that the Bank of England Governor Mervyn King said that he must realize it is dealing with a solvency problem not liquidity.
Today talks in London will focus on trade, the British Government seeks to boost trade with China to 100 billion dollars by 2015, Office of Cameron said in a statement. Downing Street said the two countries also are defined to make it easier for British companies branch Beijing and Shanghai and that China will open its market to exports of poultry U.K. again.
Wen, who visited the home town of William Shakespeare, Stratford-Upon-Avon and visited a car factory owned Chinese yesterday, will also deliver a speech before you go to Germany. In Budapest, he promised to buy a "definite" Hungarian obligations and extend a loan of 1 billion $-euro ($1.4 billion) through the development of the China State Bank to fund projects in Hungary.
To contact the reporters on this story: Zoltan Simon Budapest to zsimon@bloomberg.net Simon Kennedy in London at skennedy4@bloomberg.net.
To contact the responsible editors of this story: Craig cstirling1@bloomberg.net Stirling. Balazs Penz in bpenz@bloomberg.net;
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