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Chinese visit for 'commercial investment not bonds'

Tremonti and Bank of Italy met Chinese fund officials

13 September, 17:26
Economy Minister Giulio Tremonti
Economy Minister Giulio Tremonti
Chinese visit for 'commercial investment not bonds' (ANSA) - Rome, September 13 - A delegation from China's largest sovereign fund came to Italy to evaluate commercial investments not purchase government bonds, sources have told ANSA.

Representatives from the China Investment Corporation met Italian Economy Minister Giulio Tremonti, Infrastructure Minister Altero Matteoli and other ministers as well as officials from the Bank of Italy in Rome on September 6.

The delegation is reported to have been led by Lou Jiwei, the head of CIC.

Speculation about whether the Chinese government would buy Italian bonds emerged on Tuesday as yields on Italian five-year bonds reached their highest level since the introduction of the euro a decade ago.

On Monday the Financial Times newspaper reported that Italy had asked China to make "significant" purchases of Italian debt.

Spreads on five-year bonds were at 447 points late morning, while the spread between the 10-year Italian bond against the German bund rose to 440 points in early trading, before dropping back to 397.3 points later in afternoon trading. It was the first time that the 10-year spread against the German bund had risen above 400 basis points since the beginning of August.

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