China weighs up support for euro rescue fund

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China weighs up support for euro rescue fund

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China has given cautious support to bolstering Europe’s Financial Stability Facility.

EU leaders want China to commit to making further bond purchases to its revamped rescue fund.

But after talks with the French President Nicolas Sarkozy, China’s Vice Finance Minister said it was too soon to make any concrete plans because of market conditions and the ongoing Greek crisis.

“The Greek referendum was somewhat unexpected, but we consider it an independent decision by Greece. We hope that Athens can reduce uncertainty as much as possible in order to boost investor confidence and calm financial markets,” said Zhu Guangyao.

The EFSF is thought to have raised 13 billion euros from three bond issues this year. China’s Central Bank is expected to make a 100 billion euro contribution but Beijing has also made it clear that its help will not come without conditions.

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