Egyptian president signs new constitution

Egyptian President Mohammed Morsi has signed into law a new Islamist-drafted constitution he says will help end political turmoil and allow him to focus on fixing the fragile economy.

Referendum results announced on Tuesday, showed Egyptians approved the text with an overwhelming 63.8 percent, paving the way for a parliamentary election in about two months.

An elderly Egyptian man shows his inked finger after casting his vote in the second round of a referendum on a disputed constitution drafted by Islamist supporters of President Mohammed Morsi in Fayoum, Egypt. Khalil Hamra / Associated Press

China is positive about the new constitution and wishes the country a smooth political transition, a Foreign Ministry spokeswoman said on Wednesday.

At a news conference, Hua Chunying said: "China has taken note of the passage of Egypt's new constitution. This is a major step in the country's political transition".

On the country's stability, Hua said: "We expect Egypt to continue to push forward its orderly political transition and maintain political and social stability."

An atmosphere of crisis has deepened in Egypt since the vote, with many Egyptians rushing to withdraw cash from banks and hoarding hard currency savings at home.

Adding to people's concerns, the authorities have imposed currency controls to prevent capital flight. Leaving or entering Egypt with more than $10,000 cash has been banned.

The win gives Islamists their third straight electoral victory since Hosni Mubarak was toppled in 2011, following their earlier wins in parliamentary and presidential elections.

Morsi signed a decree enforcing the charter late on Tuesday, after the official announcement of the result of a referendum approving the basic law, Egypt's first constitution since Mubarak's overthrow.

The text has sharpened painful divisions in the Arab world's most populous nation and prompted violent protests on the streets of Cairo.

Opposition groups condemn the new basic law as too Islamist and undemocratic, claiming it could allow clerics to intervene in the lawmaking process and leave minority groups without proper legal protection.

But Morsi, catapulted into power by his Islamist allies, believes adopting the text is key to ending a protracted period of turmoil and uncertainty that has wrecked the economy.