As Premier Wen Jiabao tours Europe's major capitals and euro zone policy makers grapple with the debt crisis, one investor told CNBC that Beijing could backstop the euro zone and help its periphery through these difficult times and that solving euro zone crisis would be small change for China.
"It is not unrealistic for China to backstop the euro zone crisis," said Mark Mobius, the executive chairman of Templeton Emerging Markets Group in an interview with CNBC on Tuesday from Monaco.
"The Chinese have all this money and Europe is a natural place to diversify. The Chinese have reserves of around three trillion dollars, just a small percentage of this could help ease euro zone debt crisis," he explained.
"As we saw in Asian market crisis this type of debt can be a good investment. China is acting like a fund manager and wants a return; it also wants to be seen in a positive light by Europe," he added.
A major investor in China, Mobius told CNBC the investments to make over the coming years will be those that focus on the Chinese consumer and the infrastructure that will be needed to fuel growth.
"What Chinese are trying to do is use the banks to stop money flowing into certain sectors. They do need investment in various reasons. There is a lot of investment needed in areas like housing and electricity," he said.
"Our investments are about the consumer, consumer banks, soft drinks, the future will be about the Chinese consumer so we are investing in these areas," Mobius added. "Power is the big constraint on China. You go to these cities and the lights are out, Chinese infrastructure firms are going to do very well."