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June 24, 2011

Chinese Premier Voices Support for European Economies

Chinese Premier Wen Jiabao has offered his country's support for Europe and its common currency during a visit to Hungary.

Speaking at a Saturday news conference, Wen said China is a long term investor in Europe that has made large increases in its holdings of euro bonds in recent years. The Chinese leader did not cite the amount of Beijing's euro holdings.

Wen arrived in Hungary Friday to start a five-day tour of Europe. He will also visit Britain and Germany.

The trip coincides with sharp economic problems in Greece that have European leaders worried about the financial stability of the eurozone.

Standard Chartered Bank has said that China appears to be favoring investments in European debt over U.S. securities.

Hungarian Prime Minister Viktor Orban said his country and China signed a dozen agreements expanding business and cultural ties.

Budapest currently holds the six-month rotating presidency of the European Union.

Some information for this report was provided by AP, AFP and Reuters.