Beijing has suddenly become hesitant in buying more Euro reserves and is reportedly set to re-evaluate its holdings of eurozone debt amidst the worsening sovereign debt crisis in Europe as representatives of China's State Administration of Foreign Exchange (SAFE) met with foreign bankers based in the Chinese capital to shed light on the issue.

According to the Financial Times, SAFE, which maintains about 630 billion dollars of Eurozone bonds in reserves, has aired concerns that the eurozone crisis could spill over and exposed its foreign currency reserves.

Apart from securing a large Eurozone reserves, China also holds the world's largest foreign exchange reserves.

Analysts have estimated that about 70 percent of China's reserves are in US dollar securities though its composition and management are state secrets and the reported Chinese worry on its reserves is being blamed for the stock market reversal in US on Wednesday.

The Dow Jones Industrial Average wrapped up 69.30 points lower at 9,974.45, which is the first time in three months the blue chip index was capped below the wobbly 10,000 level.

Earlier in the day, the Dow started trading very strong and was even up by 135 points, owing to encouraging OECD report that carries optimistic US economic date, when sentiments suddenly switched to the negative by the last hour of trading.

Schaefer' Investment Research analyst Andrea Kramer said that many traders were turned off by media reports that China has developed cold feet in acquiring more European debt and amidst such scenario, "the major market indexes extended their recent pattern of eleventh-hour volatility."