The Chancellor said it was not within the mandate of the IMF to invest in such a fund, and that the organisation could only extend loans to individual countries with which it had agreed a rescue programme.
Mr Regling arrived in Beijing a day after EU leaders announced plans to leverage up its current ?440bn (�387bn) bailout fund to $1 trillion, either by using the money as a form of insurance to encourage purchases of sovereign debt, or through a new special purpose investment vehicle.
China, which already holds a quarter of its foreign exchange reserves in the Euro, could be willing to contribute "between $50bn (�31bn) and $100bn" to a new European Stability bond vehicle, the Financial Times reported, citing a person "familiar with the thinking of the Chiense leadership."
However Mr Regling cautioned against any hopes of a dramatic announcement following his meetings later on Friday at China?s Ministry of Finance and central bank, adding that he expected it would take ?several weeks? to hammer out the details of the new financing schemes.
?There are no negotiations going on, and these are regular consultations at an early phase and there will be no conclusions, certainly today, during our visit,? he said.
China?s vice finance minister Zhu Guangyao has also said the issue is not even on the agenda at the upcoming G20 Summit.
China?s leaders, while pledging support to their largest export market, have warned their European counterparts against expecting ?charity? from China which has US$3.2 trillion in foreign exchange reserves.
However Mr Klaus said he was ?optimistic? that China ? which has already invested in the first round of AAA-rated EFSF bonds ? would continue to buy the products, driven in part by a need to find a safe haven for their own foreign exchange reserves.
?China must invest [in foreign currencies] every month because their current account has a surplus. The foreign exchange reserves of China go up every month, and therefore there is a need for investment.
?My experience talking to the Chinese authorities is that they are interested in finding attractive, solid, safe investment opportunities, and I?m happy that EFSF bonds have been considered to be in that category in the past.
?Therefore I am optimistic that we will have a longer term relationship that will continue to provide safe, effective investment opportunities,? he said.
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