China allows online gold sales to boost demand
Mon April 11, 2005 10:11 AM GMT+02:00
SINGAPORE (Reuters) - China has said private investors may buy and sell gold through the Internet, its latest move to boost demand for the precious metal, industry sources said on Monday.
From late March, individuals have been able to buy gold for investment online from the Bank of China and other selected banks which are members of the Shanghai Gold Exchange, they said.
Earlier this year, China cut the import tax on jewellery to 21.3 percent from 23.3 percent in 2004 to help encourage foreign investors to set up jewellery factories as well as to boost consumption in one of the world's largest buyers.
"Investors in China can now buy and sell gold through Internet banking with certain banks which provide the service," said Albert Cheng, managing director Far East for the industry-backed World Gold Council.
Through Internet banking, investors can transfer money from their bank account into a gold saving account, making gold trading more convenient, said Cheng.
An official at the Shanghai Gold Exchange said China now allowed online gold transactions.
China is gradually liberalising its gold market but a few restrictions, such as the import tax, remain. Beijing still imposes a 17 percent Value-Added Tax that local dealers have to pay to import gold jewellery into China.
But gold is now traded freely at world prices on the exchange, which began operations in 2002.
"Starting March 28, individuals in China can buy and sell gold through their PC. It is similar to buying and selling stocks," said one dealer in Shanghai. "I think this is a right move."
Dealers said China's gold demand was expected to have risen 15 percent last year to around 314 tonnes as the country liberalised its bullion market.
"I'm not sure about March 28, but I can assure you this has taken place in China," said the official at the Shanghai Exchange, referring to online gold dealing.
The Bank of China has issued gold bars called "2008" in the run-up to hosting the 2008 Olympics, the official said, adding the bars may be bought by local investors online.
Spot gold was trading at $426.90/427.65 an ounce by 0654 GMT, versus $426.60/427.30 late in New York on Friday. |
