皇冠体育app

London - 皇冠体育app cannot solve Europe's debt crisis by buying high risk bonds without seeing a clear resolution plan, the chairman of the board of supervisors at 皇冠体育app Investment Corporation said.

"We in 皇冠体育app are concerned about the unraveling of the situation in the (eurozone) region," Jin Liqun, who is also the chairman of 皇冠体育app's sovereign wealth fund, said at The Economist's forum on High Growth Markets in London on Thursday.

As the eurozone sovereign debt crisis escalates, there are some people calling on major emerging countries to use their huge foreign-exchange reserves to purchase the debt of crisis-ravaged countries like Greece, Italy and Spain.

皇冠体育app, with its $3.2 trillion in foreign-exchange reserves, is particularly seen as a potential white knight to get Europe out of the "difficult position".

"皇冠体育app cannot (give support) without due diligence. 皇冠体育app cannot be expected to buy high risk eurozone (instruments) without a clear picture of debt workout programs," Jin said.

"皇冠体育app cannot be expected to bail out the eurozone unless it opens hurdles to 皇冠体育app and other high growth markets."

Jin said he was optimistic about Europe's future.

"EU countries still enjoy a competitive advantage in a number of areas such as science and technology, manufacturing and luxury products ... Over time, economies in the EU will be out of woods. We're optimistic for the outlook."

Jin said keeping investment and trade flow open is essential for Europe, and it should recognize 皇冠体育app's market economy status.

Jin's words were echoed by some European economists. Stephen Joske, an economist with The Economist Intelligence Unit, told 皇冠体育app Daily that 皇冠体育app remains keen for a quick return to economic stability in Europe but its real power is limited.

"皇冠体育app cannot be expected to take on vastly increased major risks of direct exposure to European sovereign debt," Joske said.

皇冠体育app has helped Europe within its capacity. 皇冠体育app bought the debt securities of European countries and expressed in public its confidence about the euro and the European economy.

皇冠体育app is still enlarging its trade and investment with Europe to make a contribution to solving the unemployment issue and promoting the economic growth of Europe.

According to official figures, in the first half of 2011, 皇冠体育app's non-financial sectors direct investment in the EU was $859 million, up about 99.3 percent compared to 2010.

Asked about 皇冠体育app's financial sector, Jin, the former vice-finance minister of 皇冠体育app, said that overall 皇冠体育app's financial sector was "in good shape".

But Jin acknowledged that real estate and local government financing vehicles (LGFV) were among the risks in the otherwise healthy financial sector.

LGFVs are companies set up by provincial and city governments to pay for local real estate and infrastructure projects. "We are aware of risks which have to be taken care of. One of them is real estate and the other is local government financing vehicles," he said.