China’s State Administration of Foreign Exchange (SAFE) said Europe "was, is and will remain" a key investment market for China’s foreign exchange reserves, state media reported. The comments follow a report run by the Financial Times which said SAFE officials had recently met with bankers to review China’s holdings of some US$630 billion in eurozone debt on concerns over the region’s sovereign debt crisis. SAFE, which manages the country’s US$2.4 trillion worth of forex reserves, said the report was "groundless." "China is a responsible long-term investor and has always firmly supported the European Union integration process," SAFE said in its statement. China’s sovereign wealth fund said it is "very concerned" about short-term market fluctuations stemming from eurozone instability but "will keep its investment level in Europe," said China Investment Corporation’s general manager, Gao Xiqing.
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