However... questions remain over the regulatory supervision of the product.It'll be interesting to see how popular this vehicle becomes. Like Indians, mainland Chinese consumers tend to prefer either physical or gold savings accounts provided by banks.
"Currently, supervision of gold trading falls on the central bank, while the China Securities Regulatory Commission is responsible for monitoring ETFs. This causes a problem over who is responsible. However, we are looking for a win-win solution so
we can launch such a product," Wang [Zhe] said.
Wang Zhouyi, an analyst from Shanghai Cifco Futures, told the Global Times Sunday that there is a growing demand for gold investment and related products in China.
"A gold ETF product will provide a new method of hedging for investors," he said.
Monday, May 23, 2011
New Gold ETF To Be Listed On Shanghai Exchange
On the heels of the new Hong Kong Commodity Exchange listing a new gold contract, the Shanghai Stock Exchange has announced the upcoming listing of a new gold ETF. As yet unnamed, it's been written into the People's Republic of China's twelfth five-year plan.