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.
SGE sources said 100-gram gold bars, which debuted on Monday at an
initial price of 160 yuan (20.5 U.S. dollars) per gram, started spot
trading at an opening price of 157 yuan per gram and then remained flat
for the entire trading session, closing at 157 yuan per gram, a drop of
three yuan.
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During Monday's trading, only 0.4 kg or four gold bars of this type
changed hands, and transactions amounted to only 62,800 yuan.
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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