Syriza party win in Greek election unlikely to hurt Chinese investment

Greek anti-austerity party Syriza is likely to win the nation's election tomorrow, but analysts say the odds of Greece exiting the euro zone and causing significant financial disruption to global investors, such as China, are slim.

Beijing might become more prudent in investing in euro assets if a so-called "Grexit" does occur, analysts said. However, its interest in investing in Greece, which serves as an easy door to Europe for Asian trade, was unlikely to abate, they said.

Syriza has vowed to end the country's austerity policies, fuelling concern about a Greek default on its debt and exit from the euro zone.

How the party negotiates a compromise on debt relief and reforms economic policy would be key developments to watch.

A senior Chinese Ministry of Commerce researcher said she did not believe Syriza taking control of Greece would lead to Grexit or a sharp reversal on economic policy.

"Of course we would be unlikely increase the exposure to Greek debt further given the current situation, but the political reshuffle wouldn't take a serious toll on our existing holdings," said Yao Ling, deputy director of the European research department of the Chinese Academy of International Trade and Economic Cooperation.

"Greece also carries strategic significance to China as it's a point that connects on-road and sea-borne trade routes."