China stands on threshold of gold ETF introduction
Provisional rules for the introduction of gold ETFs have been announced in China.
Posted: Monday , 28 Jan 2013
RENO (Mineweb) -
China Securities Regulatory Commission (CSRC) has published provisional rules for the operation of gold ETFs, which pave the way for introduction of gold ETFs into China’s financial markets.
China Daily quoted an official from the CSRC Saturday who said that there is no specific timetable for the listing of gold ETFs in China.
The move is part of the Chinese Central Government’s effort to promote the development of China’s gold and capital market. China is the world’s largest gold producer and consumer according to the China Gold Association.
Last month China’s Ministry of Industry and Information Technology (MIIT) announced that it expected Gold consumption in the country would be running at more than double national gold production by the end of 2015, more than double Chinese gold consumption forecast for 2012.
Domestic demand is set to surpass 1000 tons by the end of 2015, according to MIIT. It said this would “widen the fundamental market shortage”, observing that the shortage of supply will persist in the coming few years as domestic gold supply “might only reach 450 tons by that time.”
A statement by the CSRC noted that China’s rapidly growing gold market has created conditions for the development of gold ETFs. Nevertheless, the official, who declined to be identified, told China Daily CSRC authorities need to thoroughly study how to regulate gold ETFs.
News reports last August identified Huaan Fund Management Co. and Guotai Asset Management Co. as companies who will offer gold ETF products that will trade on the Shanghai Stock Exchange.