China may up its holding of eurozone debt

CHINA’S ambassador to the European Union said Beijing could increase its holding of eurozone government debt and said he hoped troubled eurozone states like Ireland would ensure the investment was secure.

Song Zhe said China was purchasing eurozone debt in order to diversify its portfolio and said the policy was likely to continue.

“In the next step, it’s possible we will purchase more,” he said. When asked about the possibility of debt restructuring, which could erode the value of those investments, he said: “We hope governments can ensure the security of our investments.”