Italy asks China to buy its bonds: report

Italian officials told the FT that Lou Jiwei, chairman of China Investment Corp (CIC), headed up a delegation to Rome last week to meet with Giulio Tremonti, finance minister, and Italy's Cassa Depositi e Prestiti.

Two weeks ago Italian officials were in Beijing to meet CIC and China's State Administration of Foreign Exchange (SAFE), which manages the bulk of China's foreign exchange reserves, the FT said.

CIC is the country's $300 billion sovereign wealth fund.

China signaled in April that it could buy more debt from the euro zone's weaker states. There are no precise figures, but China has said it has bought billions of euros of debt.

Wu Xiaoling, a former deputy governor of the People's Bank of China, told Reuters on Tuesday, that investor "panic" about Europe's debt crisis is unnecessary, and China is ready to work with others to boost market confidence.

"We will continue to support Europe's measures in maintaining a stable euro," said Wu, who is now with the National People's Congress Standing Committee, the law-making body.

With about a quarter of China's record foreign currency reserves of $3.2 trillion estimated to be held in euro assets, Chinese leaders have repeatedly voiced support for the debt-mired single currency area.

Premier Wen Jiabao said earlier this month that China retains confidence in the euro and Europe's economy but the region's governments need to ensure the security of Chinese investments there.

(Additional reporting by Kevin Yao; Editing by Jacqueline Wong)

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