BIZCHINA / Top Biz News |
China lowers gold trading threshold for private investors(Xinhua)Updated: 2006-12-26 09:57 In a move to attract small private investors, China on Monday lowered the
trading threshold at the Shanghai Gold Exchange (SGE) from one kilogram to 100
grams.
However, business was brisk for other types of gold. 2,359 kg of two other conventional types of gold were traded and 1,506 kg of gold listed for trading delay (T+D). An SGE spokesman blamed the poor market performance of the newly premiered 100-gram gold bars on a the Christmas holiday season. Industry experts still believe China's latest move will help diversify gold investment channels in the country and standardize the market for gold transactions. In July last year the SGE proposed spot trading of gold by private investors in cooperation with the Industrial and Commercial Bank of China (ICBC). However, the one-kg 160,000 yuan (20,000 US dollars) threshold turned off many private investors. The volume of spot transactions by private investors in the first ten months accounted for just 0.57 percent of total trading.
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