China lowers gold trading threshold for private investors
(Xinhua)Updated: 2006-12-26 09:57
The Provisional Measures Regarding the Administration of Spot Trading of Gold
by Private Investors published by the SGE stipulate a private investor can
participate in spot trading and even claim gold at designated warehouses in
Shanghai, Beijing and Shenzhen via any SGE financial members or other
agents approved by the People's Bank of China.
SGE will charge private investors a fee
of 0.06 per cent plus commissions with a maximum of 0.15 per cent, say the
provisional rules.
Wong Hasang, a native of Hong
Kong and chairman of the board of Guizhou Xixibao Mining Co., said the lower SGE threshold would
lure more small private investors to spot trading of gold but that he himself
was not interested for the time being.
"Investing in gold is not for the
faint-hearted," said Wong. "You need to have a speculative frame of mind because
the risk in investing in gold is high." Wong said he followed the gold market
assiduously because many of his friends in Hong Kong invest in
gold.
Cheng Fumin, president of the China Gold Association, said sales of
gold had risen since the beginning of the year.
Sales of gold bullion and
gold bars account for more than one tenth of gross gold consumption in
China.
"I think more investors will be attracted to spot trading and the
number of transactions will increase as the SGE opens its doors wider," said
Cheng.
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