Chinese Premier Dampening Speculation on European Bailout; China Willing To Buy Debt Of Crisis Nations; Who Is Bailing Out China?

From Bloomberg:

Japanese stocks dropped after Premier Wen Jiabao said indebted economies must “put their own houses in order,” damping speculation China would rescue Europe from a crisis that has sent global financial markets plunging.

The Nikkei 225 (NKY) Stock Average slipped 1.1 percent to 8,518.57 at the 3 p.m. close in Tokyo, reversing earlier gains of as much as 0.6 percent after Wen’s comments today at the World Economic Forum in the Chinese city of Dalian. The broader Topix slid 1.1 percent to 741.69.

“He put to rest any speculation China will buy more European debt,” said Naoki Fujiwara, who helps oversee $6 billion at Shinkin Asset Management Co. in Tokyo. “Still nobody thought that the bond purchases would be enough to solve the crisis, anyway. There won’t be resolution unless Europe addresses its debts in a fundamental way.”

http://www.bloomberg.com/news/2011-09-14/nikkei-225-advances-as-european-debt-concern-eases-energy-companies-rise.html

From Bloomberg:

China is willing to buy bonds from nations involved in the sovereign debt crisis, National Development and Reform Commission Vice Chairman Zhang Xiaoqiang said in an interview with the media in Dalian yesterday.

“Countries must first put their own houses in order,” Wen said. “Developed countries must take responsible fiscal and monetary policies. What is most important now is to prevent the further spread of the sovereign debt crisis in Europe.”

http://www.bloomberg.com/news/2011-09-14/china-willing-to-buy-bonds-from-sovereign-debt-crisis-nations-zhang-says.html

From Market Watch:

China’s real-estate market may face an escalating credit crisis, with industry data for August providing clues that big developers are running short of cash, according to Credit Suisse analysts.

The unfolding situation heralds a perfect storm for China’s home-building industry, and China’s deteriorating credit backdrop should be viewed by investors with alarm, the Credit Suisse analysts said.

http://www.marketwatch.com/story/china-developers-short-of-cash-analyst-2011-09-14?siteid=rss&rss=1