Individual investors to strike gold soon
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The Shanghai Gold Exchange may open its doors to individual investors before the end of June, a top executive of the exchange told Shanghai Daily yesterday.
"The People's Bank of China hasn't yet issued the official license for the new business. But it has confirmed that we can take in individuals as soon as the four authorized commercial banks have completed their preparatory work to conduct the business," said Shen Xiangrong, council director of the exchange.
Individuals will be allowed to buy or sell real bullions, or trade in deposit accounts through the Industrial and Commercial Bank of China, the China Construction Bank, the Agricultural Bank of China and the Bank of China, which act as agents between investors and the exchange.
"If all goes well, we expect to launch the individual business in the first half of this year. But it could also be delayed if preparatory work, much complicated in details such as pricing system and risk controls, is not finished in time," Shen said.
Bank executives declined comment, citing confidentiality in the neck-to-neck race among the four lenders.
"The timetable for the launch of the new business in each bank is especially sensitive because of the likely fierce competition," Fan Xiangyu, an official of the Bank of China said.
China's gold market was controlled by the People's Bank of China for decades until late last year, when the Shanghai Gold Exchange officially started operation to allow gold producers, corporate users and banks to trade the precious metal.
The move was part of the central bank's plan to gradually deregulate the market in a bid to relieve the heavy burden on gold reserves.
Shen's remarks came at a press conference yesterday on the eve of the Jewelry Expo Shanghai 2003, which will run through Sunday at the Shanghai Exhibition Center.
Some 150 jewelry producers and retailers, from the Chinese mainland as well as China's Taiwan, Hong Kong, Australia and the United States, are taking part in the expo.
Despite government warnings over the severity of the SARS crisis in Shanghai, officials of the Gemmological Association of China, the major sponsor of the exhibition, sounded upbeat yesterday.
"According to figures Shanghai still remains one of the safest places in China as far as severe acute respiratory syndrome is concerned. We are confident that the exhibition will be a great success because jewelers from around the world are displaying their products here," Wang Yongqing, deputy secretary general of the association, said.
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