European stock exchange traded funds were rising Tuesday despite rumblings out of China. A Chinese state bank reportedly stopped foreign exchange forwards and swaps trading with several European banks due to the debt crisis.
The European banks include French lenders Societe Generale , Credit Agricole and BNP Paribas, Reuters reported.
Chinese Prime Minister Wen Jiabao said China is willing to help European countries in financial distress but wants China to be recognized as a market economy, The New York Times reports. Europe is Beijing’s largest export market.
However, China will step up its purchases of U.S. Treasuries, the official People’s Daily reported on Tuesday, according to Reuters. Yan Xiaona, a researcher with the Chinese Academy of Social Sciences, said the dollar “is relatively safer than the euro” because of the unfolding sovereign debt crisis in Europe.
ETFs focused on China include:
- iShares FTSE China 25 Index Fund (NYSEArca: FXI)
- PowerShares Golden Dragon Halter USX China Portfolio (NYSEArca: PGJ)
Tisha Guerrero contributed to this article.
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