China buys Spanish and Portuguese sovereign debt

14 January 2011

London, United Kingdom, 14 Jan – China Thursday took on Spanish sovereign debt in an auction Thursday after Wednesday doing the same for Portugal, the deputy governor of the People’s Bank of China.

Cited by British newspaper The Guardian, Yi Gang said “We have been and are a consistent buyer and we have a long-term view of our investments in Europe,” and added, “these are delicate times and we take a positive role.”

Yi Gang also said that China, which holds 13 percent of Spain’s sovereign debt, had every interest in supporting European Union countries, “in times of trouble” taking into consideration that the European economic bloc is its main trading partner.

At the end of a visit by a Chinese delegation to some European countries, including Speain and Germany the deputy governor of China’s central bank gave assurances that China, “We will do our best to be a stabilizer in this process and support further integration of the EU.”

In Thursday’s auction Spain was able to get funding for three years at a rate of 4.5 percent and in Wednesday’s auction Portugal issued 10-year bonds at a rate of 6.7 percent. (macauhub)