Buying European bonds helps to shore up China's vital market, stop the slide of the euro that would make China's exports more expensive, protect Chinese euro-denominated assets and diversify Chinese reserves away from dollars.
ECONOMIST: China��s buying spree raises hope, and fear in Europe
Many have continued to dwell on the main headlines worrying about the prospect of a euro zone break-up, a hard landing in China, or a recession in the U.S., among many others.
According to The National Union of French Apiculture, or Unaf, the increase in honey imports has encouraged an illegal multi-million euro market of honey coming mainly from China, which, at 350, 000 tons per year, has become the largest honey producer in the world.
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He pointed out that China has been increasing its holding of euro-denominated government debt and hasn't been selling since the risk of a Greek default became acute.
Global investors have been scrutinizing CIC's investment strategy lately because of frequent market talk about the potential for China to aid the debt-laden euro bloc by purchasing European debt.
The rise of China as a major global manufacturer, for example, pushed euro-zone economies in opposite directions.
If the euro-zone's sovereign debt troubles continue to worsen and spillover to the wider financial system, then China's shipping outlook may shift again.
China's desire to slow the rate at which it builds reserves may slacken demand for euro-denominated assets.
ECONOMIST: Capital and companies from China are sidling into Europe
The People's Bank of China Governor Zhou Xiaochuan said the country's central bank will add to its holdings of euro-denominated assets.
In government-bond markets, China's support for wobblier states may well dwindle as 2013 gets nearer: then a new euro-zone sovereign-debt fund will be able to promote the claims of European governments on some countries above those of other creditors.
ECONOMIST: Capital and companies from China are sidling into Europe
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