China Needs Urgent Guidance on Euro Debt Risk, Yu Yongding Says
This article is for subscribers only.
China should urgently seek guidance on whether its holdings of “euro periphery debt” will be affected by any restructuring, said Yu Yongding, a former adviser to the Chinese central bank.
“Until such clarification is provided, or the eurozone comes up with a permanent resolution mechanism, China should give no commitment to support the eurozone through direct government bond purchases -- this simply risks throwing good money after bad,” Yu wrote in the Financial Times today.