bloomberg.com / By Brett Miller / June 10, 2013, 1:40 PM GMT+0800
China approved two domestic exchange-traded products backed by gold as global holdings of the precious metal in ETPs dropped to a two-year low.
Huaan Asset Management Co. and Guotai Asset Management Co. received the China Securities Regulatory Commission’s permission to start the funds, which will be denominated in yuan, said Liu Jianqiang and Li Yebin, spokesmen for Huaan and Guotai. They will be traded like stocks on the Shanghai Stock Exchange (SHCOMP), tracking movements of spot gold on theShanghai Gold Exchange, Liu and Li said separately by telephone from Shanghai.
Gold slid into a bear market in April amid concern the U.S. Federal Reserve may rein in stimulus that helped bullion cap a 12-year bull run in 2012 and as investors reduced holdings in exchange-traded products backed by the metal. Buyers in mainland China viewed the rout as buying opportunity and rushed to purchase jewelry, bars and coins in late April and early May.
