China is buying Greece

China is buying Greece.

Greece is starting to emerge from its severe debt crisis, Chinese Premier Wen Jiabao said on Sunday during a visit to Athens.

"It is with joy that we see Greece emerging from the shadow of its debt crisis," Wen told the Greek parliament. "The financial market has started to stabilise, the budget deficit is coming down, investor confidence is increasing and a growth prospect is emerging on the horizon."

"We have every confidence in Greece's future," he said.

China offered on Saturday to buy Greek government bonds when Athens resumes issuing, in a show of support for the country whose debt burden pushed the euro zone into crisis and required an international bailout.

Goldman Sachs was reported to recommend China to buy Greek debt this January in FT. Even after that, several times mass media has noted China's buying spree of Euro debt. One reason is, of course, that China wants to diversify its portfolio to depend less on US bonds. Other sources indicated that the second largest economy in the world is purchasing Japanese and Korean bonds.