Easing of restrictions on the gold market in China
December 5, 2006
To follow up on yesterday's theme of China-centric news, below is more information about the easing of restrictions on the gold market in China. Our clients should not underestimate the positive impact on precious metals prices a more liberal and open bullion market in China will eventually have around the globe. These systems of purchase and distribution are just getting up and running. We still have yet to see the big gains of physical off take from the market in the Asian sector. It's coming....
Minimum bullion trade volume cut by 90%
Gu Jia
2006-12-05
THE minimum trade volume of gold bullion in Shanghai will soon be cut down from 1,000 grams per transaction to 100 grams, said the Shanghai Gold Exchange yesterday.
The People's Bank of China, the country's central bank, has approved the decrease, Youth Daily reported today, citing a senior official with the gold bourse.
Meanwhile, the bourse plans to authorize more banks to participate in gold bullion transactions, but for now, the Industrial and Commercial Bank of China in Shanghai is the only bank authorized to perform the online trades, the report said.
"We are preparing for the new regulation, which may come over the weekend," said an official with the ICBC in Shanghai. "Our system has already been prepped for the reduction."
The cumulative transaction volume in gold bullion has hit 7,600 kilograms since ICBC launched the investment channel November 2005.
Trading volume of paper gold, another gold investment vehicle, in both foreign currency and yuan accounts has reached 1,900 kilograms in US dollars and more than 8,800 kilograms in yuan.
For more information, visit the Industrial and Commercial Bank of China's official Website (www.icbc.com.cn/e_index.jsp).
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