China hunting for euro bargains

China has given another clear indication that it is carefully monitoring the strength of the euro currency as it seeks to diversify its large supply of foreign reserves away from the weakened dollar.

"I don't think the dollar reserve will change in the near-term but we don't want to put all our eggs in the same basket," China's ministry of foreign affairs spokesman Qin Gang told EUobserver.

The country's political elite has watched with growing alarm over the past year as the US...