Uploaded by Newsy Business, Transcript by newsy.com, Share Link: DailyProtein, Written BY ANLI XIAOANCHOR ERICA COGHILL: Is China going to give a helping hand to a debt-burdened Italy? That's the word on the street according to CNN. RAMY INOCENCIO, CNN ASIA BUSINESS ANALYST:"The message was apparently being sent from Rome to Beijing that 'Please help us out of our debt crises' and that turned out that the Italian officials and Chinese investors have recently held meetings at both countries' capitals." It's wouldn't be the first time China has gotten involved in the European debt crisis. In 2010, the Chinese government bought Greek bonds and was an avid bidder in Portuguese bond market. Seeking Alpha did the math for us, and says, yes, China has the money to help. "The Chinese Investment Corporation, the entity that seems to be considering an Italian debt investment, has about $400 billion worth of assets worldwide. With 4% of their assets in cash as of their latest annual report, the infusion of $16 billion or more into the Italian bond market should make rates much lower (and hence more manageable for the ECB and Europe to sustain the nation's troublesome situation)." However, a Charles Stanley strategist tells The Telegraph, this may not be a profitable venture. "It wouldn't be the first time the market had hoped that China would ride to the rescue...but the Chinese don't have a great track record. They participated in the Portugal bonds this year, and they lost money." And what if China buys Italy's bonds? Would China save Italy and even Europe? Ju Wang at Barclays Capital in Singapore tells Bloomberg, don't bet on it. "The issue with Europe is bigger than China alone can help with... Italy's debt load is ... exceeding half the Chinese foreign-exchange reserves... China probably will continue to help to shore up the euro, but its involvement ... is unlikely to be too aggressive." Recent Business News spoke with Robert O'Daly at The Economist Intelligence Unit, who says it may stop the bleeding, but not for long. "Purchases of Italian bonds or other Italian assets by China's sovereign wealth fund would buy Italy some time, but that is all... As seen with the E.C.B.'s purchases ... of Italian government bonds in August the effect was temporary." Most analysts agree China won't be able to intervene on a scale that could save the Italian economy, but some think even a little effort could go a long way for China's PR. A researcher with the Australia & New Zealand Banking Group tells the International Business Times,,, "'It's a clear pattern of China's intention to help stabilize the euro area... The benefit to China is that it will help in the perception of host countries if China is viewed as a responsible stakeholder in the global community.'"
