1970-01-01 08:33:27
Shanghai International Trust and Investment Co Ltd (SITICO), member of the Shanghai Gold Exchange, is designing products for gold funds. Its parent company, Shanghai International Group (SIG), will set up China Gold Fund Management Co Ltd, sources said.
According to SITICO's plan, gold fund products will be sold either in the form of trust products or as part of an investment portfolio.
"Research of gold fund products by SIG and SITICO started last year," said a person closer to the matter. "They plan to invest in gold producers listed in Shanghai and Hong Kong. And three major items traded in the Shanghai Gold Exchange - Au99.99, Au99.95 and Au (T+D) - as well as overseas gold futures may also be the investment targets of the first gold fund."
SIG is also considering launching China Gold Fund Management Co Ltd.
A year ago, the China Gold Association, joined by China Gold Group, several banks and trust companies, planned to create China Gold Fund Management Co Ltd, which would cover gold derivatives trading and investment in gold mines. However, due to worries about high capital demand and operational risks, the plan was put aside. SIG is picking up and continuing their plan, according to the insider.
Source:chinadaily.com.cn