China on Tuesday reiterated its confidence in the European economy and euro, adding that Europe will continue to be one of China's major foreign investment markets.

Foreign Ministry spokesperson Jiang Yu made the remarks in response to a question regarding whether China would purchase Italian bonds.

Jiang said to properly settle Europe's sovereign-debt troubles is of vital importance to maintaining the stable worldwide development of finance and trade as well as the global economy.

"We support European countries' efforts to handle the debt crisis, and believe they will enhance coordination and take collective measures to properly address related issues," said the spokesperson.

China hopes to expand cooperation with the European Union countries in trade, finance and investment areas, to jointly counter challenges.

She also called on EU countries to take concrete measures to ensure the security of Chinese investment in Europe.

Reports said Italy's Finance Ministry has held talks with China's sovereign-wealth fund and other Chinese monetary authorities with regards to Beijing buying Italian bonds.