China plans to open its domestic gold market within two years, said Wang Dexue, director of the State Gold Administration Bureau of the State Economic & Trade Commission.
Wang pointed out that China's gold industry has for a long time been operated under the system of a planned economy. Although the Chinese government adopted some preferential policies, it has relatively been developed in a closed way under a self-governed system. In the meanwhile, due to its specific situation, the gold industry has for a longer period dissociated from the international market as compared to other industries, and so far it has not been integrated with the international gold market. During the 21st century China must speed up the opening of its domestic market for gold industry.
Wang stressed that as the opening of the gold industry to the international market is closely related to the reform of the financial system in China, it can only be carried out step by step and not to be opened all at once. But he predicted that China's gold market is going to be opened within two years.
Wang said that the gold price at home is almost on a par with that in the international market. The gold was formerly used only for currency reserve and investment. Along with the weakening of its currency function and the opening up of the Chinese market, China should, by seizing this opportunity of the gradual opening of its domestic gold market, adjust the structure and expand its business scope so as to realize the integration of production and business operation within two years time.
(People's Daily 09/26/2000)
