Description:Â â€œFrom the outbreak of the sovereign debt crisis in certain European countries at the start of this year I have repeatedly voiced Chinaâ€™s support of measures adopted by the European Union and International Monetary Fund,â€ said Wen, who began a tour of European capitals in Greece yesterday. â€œChina supports a steady euro and it will not be reducing its European bond holdings.â€
Questions for discussion:
- What are the immediate consequences of the Chinese investments in Greece?
- How can Greek bonds be expected to react, as a result of the Chinese involvement?
- What do you think is motivating the Chinese investment strategy?
- What would your recommendations be to investors under these new circumstances?
- Do you think this development will affect the financial markets of other European countries that are facing economic challenges, such as Ireland and Spain?
- How will this development affect currencies?