China's foreign exchange regulator said Thursday Europe will remain one of its key investment markets, refuting a report saying China is reviewing its holdings of European bonds as "groundless."

In a brief statement on its website, the State Administration of Foreign Exchange (SAFE), said China supported the measures taken by the European Union (EU) and the International Monetary Fund (IMF) to stabilize the financial markets.

"We believe, that with the concerted efforts by international community, the euro zone will definitely overcome difficulty and safeguard the stable and healthy development of the financial markets in Europe," said the SAFE statement.

China would continue to follow a principle of diversification in investing its foreign exchange reserves as a "responsible and long-term" investor, it said.

The statement reiterated China would always support the EU integration process.