The Shenzhen Development Bank began trading nationwide in
individual gold bars today.
Individual investors can trade gold in 100 gram increments,
which currently cost about 19,000 yuan (US$2,547) each.
The Shenzhen-based bank joined the market after rival Fujian
Province-based Industrial Bank became the first commercial lender
to team up with the Shanghai Gold Exchange to offer individual gold
bullion trading in July.
The Shanghai branch of the Industrial and Commercial Bank of
China has offered the service since July 2005.
Lenders including Bank of China and China Construction Bank
allow investors to trade in gold on paper, but they don't get to
hold the bullion in their own hands.
Gold prices have risen 21 percent this year.
China is the world's third biggest gold consumer, and many
Chinese like to keep the precious metal at home as a hedge against
inflation and symbol of good luck.
China deregulated its gold market in late 2002, when the
Shanghai Gold Exchange officially started operation to allow gold
producers, corporate user and banks to trade the metal.
(Shanghai Daily November 6, 2007)
