Sending Italy To China For Help &Nbsp; China Will Purchase Large Quantities Of Treasury Bonds On A Large Scale.

The Financial Times article on Monday said

Reported that Italy officials have confirmed that one of the largest sovereign wealth funds in the world, China Investment Corp has sent a delegation led by Chairman Lou Jiwei to Italy last week and held talks with finance minister Giulio Giulio Te (Tremonti).

Italy's state-owned entity Cassa Depositi e Prestiti has set up a foreign country.

The report stressed that Italy officials visited Beijing two weeks ago, and met with the leaders of CIC and China's State Administration of foreign exchange, which managed China's US $3 trillion and 200 billion foreign exchange reserves.

Vittorio Greely, head of Italy's finance ministry (Vittorio Grilli) also visited Beijing in August to meet some Chinese investors.

Official sources in Italy say the two sides will have further negotiations soon.

China's investment will be a key investment for Italy at a critical moment, the report said.

Because the scale of Italy's national debt will reach 120% of GDP, the yield of treasury bond market demand is also higher and higher, which has increased the borrowing cost of Italy's national debt.

Data show that the proportion of Italy's national debt to GDP is in the euro area after Greece, which has already been in trouble.

European analysts, however, remain cautious about the outcome of the talks between Italy and China.

Some analysts said that although Beijing has repeatedly expressed high confidence in the credibility of Greece and Portugal, the scale of China's actual purchases of Treasuries is relatively limited.

There is currently no data on how much China holds 1 trillion and 900 billion euros of Italy's treasury bonds. However, a previous unconfirmed official information source in Italy said that China holds about 4% of Italy's treasury bonds.

China Investment Corp was established in 2007 with a capital of 200 billion US dollars.