China to Europe: We'll Invest in the Physical Economy, "Not Government Bonds"
February 15, 2012 • 9:09AM
Just before a China-European Union summit meeting between top Chinese leaders and EU President Herman Van Rompuy and European Commission President Jose Manuel Barroso in Beijing, which started Tuesday, Lou Jiwei, chairman of the $350 billion Chinese sovereign wealth fund China Investment Corp., said any fresh injection of funds into Europe would be in industrial and other "hard" assets, not government bonds.
Speaking at a forum in Beijing, Mr. Lou said Mrs. Merkel had asked the sovereign fund and other long-term investors to buy European government debt when she visited Beijing earlier this month. "For European bonds like the government bonds of Italy and Spain, only central banks with certain responsibilities can invest," he said. "Investment opportunities may lie in areas like infrastructure and industrial projects," he said, "and these projects can help economic recovery."
Chinese Premier Wen Jiabao said "China's willingness to support Europe to cope with sovereign debt problems is sincere and firm," at a joint press conference with European Union President Van Rompuy, as he also had said to Merkel. "China is ready to get more deeply involved in participating in solving the European debt issue," while reiterating that for China this means building the real economy.
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Just before a China-European Union summit meeting between top Chinese leaders and EU President Herman Van Rompuy and European Commission President Jose Manuel Barroso in Beijing, which started Tuesday, Lou Jiwei, chairman of the $350 billion Chinese sovereign wealth fund China Investment Corp., said any fresh injection of funds into Europe would be in industrial and other "hard" assets, not government bonds.
Speaking at a forum in Beijing, Mr. Lou said Mrs. Merkel had asked the sovereign fund and other long-term investors to buy European government debt when she visited Beijing earlier this month. "For European bonds like the government bonds of Italy and Spain, only central banks with certain responsibilities can invest," he said. "Investment opportunities may lie in areas like infrastructure and industrial projects," he said, "and these projects can help economic recovery."
Chinese Premier Wen Jiabao said "China's willingness to support Europe to cope with sovereign debt problems is sincere and firm," at a joint press conference with European Union President Van Rompuy, as he also had said to Merkel. "China is ready to get more deeply involved in participating in solving the European debt issue," while reiterating that for China this means building the real economy.
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