Post date: Oct 28, 2011 12:30:6 PM
The chief of the euro zone's bailout fund, Klaus Regling, arrives in China to meet with officials in an attempt to sell European debt. But he's warned he doesn't expect to strike a deal.
EUROPE-CHINA/EURO - Europe's looking east - for investors.
Just a day after euro zone leaders agreed on measures to contain Europe's debt crisis, the head of the region's bailout fund was in Beijing for talks with potential buyers of European debt.
Chief executive of the European Financial Stability Facility Klaus Regling says while he doesn't expect to reach a deal with China - he does expect the country to continue buying the fund's bonds.
CHIEF EXECUTIVE OF THE EUROPEAN FINANCIAL STABILITY FACILITY, KLAUS REGLING, SAYING:
"The foreign exchange reserves of China go up every month, therefore there is a need for investment. That's also my experience talking to the Chinese authorities that they are interested in finding attractive, solid, safe investment opportunities. And I am happy that EFSF bonds have been considered to be in that category in the past, and therefore I am optimistic that we will have also a longer-term relationship because we will continue to provide safe, attractive investment opportunities."
Regling was to meet with Chinese officials to hear how the fund could attract further investment.
But China is said to want more details about plans to boost the euro zone bailout fund, before making any decision.
London Capital Group analyst Angus Campbell says both regions depend on each other.
LONDON CAPITAL GROUP MARKETS ANALYST ANGUS CAMPBELL SAYING:
"It's in China's interests that Europe is stable, Europe is strong. And also for us, is in our interests that China invests in us."
China is a regular buyer of the fund's triple A rated bonds - and around a quarter of its reserves are held in euro denominated currencies. Europe is also China's biggest trading partner.
France has said that an investment by China would inspire confidence, at a time when it's needed more than ever.
Kirsty Basset, Reuters.