Beijing remains wary of investing in European bonds but continues to support the provision of additional funding for the International Monetary Fund, The Wall Street Journal reported, quoting an individual familiar with China’s position. China’s government is waiting for the IMF to provide a concrete proposal for how it would raise and use additional funds, the person said. The IMF now has a lending chest of around US$390 billion that it could use to help handle crises both in Europe and in the rest of the world. With the backing of the G-20, the IMF expanded its capital base during the 2008-2009 financial crisis; so far this year, however, the US and Germany have been critical of proposals to further expand its lending resources.
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