The Chinese mainland's gold output reached a record high of
212.35 tons last year, according to an industry organization.
The figure was up 11.75 tons, or 5.86 percent year-on-year, said
the China Gold Association.
"The record high mainly resulted from production increases at
domestic gold mines boosted by high gold prices," said Wang Yanpin,
an official from the association.
China National Gold Group Corp, the nation's biggest gold firm
and the parent of Shanghai-listed Zhongjin Gold Co Ltd, said that
it produced 42 tons of the precious metal last year, a year-on-year
increase of 25 percent.
"China's gold industry has good opportunities to develop rapidly
based on the domestic huge market with a population of 1.3
billion," Wang said.
The nation now ranks fourth in the world in terms of both gold
output and demand.
He said domestic gold producers enjoyed "bumper profits" last
year thanks to high gold prices.
Domestic gold companies' profits jumped 38.06 percent
year-on-year to 2.65 billion yuan (US$320.2 million) in the first
11 months of 2004.
Gold prices at the Shanghai Gold Exchange, the only one of its
kind in China, ranged from 100.55 yuan (US$12.14) to 121.55 yuan
(US$14.68) per gram last year in line with fluctuations on the
international gold market.
The World Gold Council predicted last year that annual gold
demand in the mainland is expected to grow to 600 tons in the
coming years from 207.6 tons in 2003, boosted by the ongoing
deregulation of China's gold market.
"Gold demand in the mainland this year will be very positive as
a result of high gold prices, opening of gold investment businesses
to individuals and gold-loving Chinese people's buying spree before
Spring Festival (on February 9)," said Roland Wang, director of the
gold council in China.
During the first three quarters of last year, gold demand in the
mainland stood at 176 tons, including 162 tons in jewellery form
and five tons as an investment, according to statistics from the
gold council.
The Bank of
China, the Agricultural Bank of China and the Industrial and Commercial
Bank of China were approved by China Banking
Regulatory Commission recently to open gold investment
businesses to individuals.
Gold trade volume of Shanghai Gold Exchange amounted to 665.3
tons last year, up 41.35 percent from 2003.
Its gold trade value surged by 59.17 percent year-on-year to
73.1 billion yuan (US$8.83 billion) in 2004.
(China Daily January 29, 2005)