Italy rumored to hold investment talks with China

Italian officials have been holding secret talks with Chinese officials about potential investments as a sovereign debt crisis in Greece threatens to spread into the region’s third-largest economy, Bloomberg reported, citing an Italian official speaking on condition of anonymity. The offical said that the talks did not focus on the purchase of Italian bonds by China; Italy hopes to sell EUR7 billion (US$9.6 billion) in bonds tomorrow to shore up government finances. Concerns about the crisis last month pushed Italian bond yields to their highest level since the country entered the Euro Zone, and the government has rushed through a drastic austerity package to convince the European Central Bank to buy its debt. Asia’s benchmark stock market index yesterday fell to its lowest level this year on concern that Greece may default on its debt.