China signals it may buy more EU debt

Song Zhe, China’s ambassador to the European Union, said that the country could buy more bonds from governments in the region to shift away from US Treasuries, the Wall Street Journal reported. “It’s possible we will purchase more sovereign bonds,” said Zhe. “We want to diversify our portfolio, prevent risk and protect value in foreign exchange.” He also said that China was seeking “stability” in the country’s largest trading partner. Analysts viewed the statements as a move to shore up confidence in the eurozone. “The Chinese are worried about the euro sliding, and they also want to slow protectionism here in Brussels. So it’s a combination of economic, commercial and political considerations,” said Jonathan Holslag, a research fellow at the Institute for Contemporary China Studies in Brussels.