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China may buy Portuguese bailout bond

A senior fund official said that Asian investors, including the Chinese government, will be a “strong proportion” of investors in Portuguese bail-out bonds when they are auctioned off in June, the Financial Times reported. The statement came from Klaus Regling, chief executive of the European Financial Stability Facility, who added that China was “clearly interested” in investing, if only in the interests of diversifying its portfolio. “[Asia] is a region that has money to invest in the rest of the world,” he said. “…They look at us and come to the conclusion that it’s a good way to diversify.” China is a current holder of Portuguese and Greek sovereign debt, and made undisclosed investment in an Irish bailout bond auction in January.

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