China deregulates gold market
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A sales assistant arranges gold rings at a jewelry store in Haikou, Hainan Province, yesterday. China yesterday said it will further open its gold market and improve tax policies for investment in the precious metal. [Shanghai Daily] |
![A sales assistant arranges gold rings at a jewelry store in Haikou, Hainan Province, yesterday. China yesterday said it will further open its gold market and improve tax policies for investment in the precious metal. [Shanghai Daily]](http://images.china.cn/attachement/jpg/site1007/20100804/001372a9a93f0dc3081051.jpg "A sales assistant arranges gold rings at a jewelry store in Haikou, Hainan Province, yesterday. China yesterday said it will further open its gold market and improve tax policies for investment in the precious metal. [Shanghai Daily]")
China said Tuesday it will further open its gold market and improve tax policies for investment in the precious metal.
The People's Bank of China yesterday issued an industry guide to further develop its gold market. China is the fifth largest holder of gold in the world.
China will allow more commercial banks to import and export the metal, the central bank said yesterday.
China will improve foreign exchange policies of the gold markets and further open the market to overseas players.
Overseas banks including HSBC and Standard Chartered are members of the Shanghai Gold Exchange.
The central bank has asked the Shanghai Gold Exchange, Shanghai Futures Exchange and commercial banks to engage more actively to develop a national gold market.
China is steadily opening up its gold market, including setting up a bourse allowing individual to trade bullion and encouraging banks to offer gold investment products.
The Shanghai Gold Exchange, China's sole bourse for gold and platinum, was set up in 2002, indicating the free trading of gold. Previously, the central bank set quotas.
China holds 1,054 tons of gold reserves, following the United States, Germany, France and Italy. China's gold reserves account for less than 2 percent of its foreign exchange reserve.
The World Gold Council said earlier that China's consumer gold demand is set to double in tonnage over the next decade as the economy rises.
In 2009, total consumer demand for gold in China grew 7 percent to 461.9 tons, worth more than US$14 billion, equal to 11 percent of global gold demand.
Over the past five years, consumer demand for gold has risen at an average rate of 13 percent annually in China.
