China on Friday approved of an European Union (EU) agreement on a single supervisory mechanism, saying it will help stabilize the market and shore up confidence.

Foreign Ministry spokesman Hong Lei told a regular press briefing that China noticed a series of measures the EU had taken to mitigate debt problems.

"These measures will play a positive role in stabilizing the market and shoring up confidence. We believe the EU will continue to consolidate consensus and stabilize the situation," Hong said.

Hong's remarks came after EU finance ministers agreed to hand the European Central Bank (ECB) broad powers to supervise eurozone banks, a first major step towards a banking union.

Under the bank supervision agreement, banks with assets over 30 billion euros (about 39 billion U.S. dollars) or those that represent 20 percent of their national economies will be placed under the direct oversight of the ECB.

The ECB can also supervise any other bank it wants within those countries that have agreed to come under its agreement.

The remaining small banks would stay under supervision of their current regulators. The supervisory mechanism, composed of the ECB and national authorities, will be operational on March 1, 2014.

"The EU is the world's biggest economy. Stable and healthy economic growth of the EU and the eurozone will be vitally important for the global economy to maintain a recovery momentum," Hong said.

He added that China supports the EU's positive measures to cope with current challenges, and was ready to work with the international community to make efforts for the stability of the global financial market and recovery and growth of world economy. Endi

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