Gold futures in an increasingly tense war preparations, Shanghai gold trade’s gold derivative product innovation is quietly extended to the gold fund. The source disclosed to reporters the other day, Gold Exchange as a member of the Shanghai International Trust and Investment Company is developing gold fund products, its parent company Shanghai International Group, is likely to take over the establishment of the China Gold Fund Management Limited.

According to sources, Shanghai International Group, the initial idea is that groups related to the research and development work, and adopted under the Shanghai International Trust and Investment Co. Ltd. Gold Fund, the main form of the two, A gold fund is packaged products directly to the Trust investment products sales; Another relatively conservative, Gold funds forthcoming product mix other trust investment plan to pull together the financial package for sale to investors.

“Starting last year, Shanghai International Research Group Fund gold products has been carried out in intense fashion. Their plan is to raise a certain scale capital investment in the gold industry listed enterprises, enterprises listed gold may include the A shares, Hong Kong stocks listed companies. “Informed sources said. In addition, only the first gold investment fund may also present on the domestic gold market, the three varieties of gold, Au99.99, Au99.95 and Au (T + D) deferred settlement varieties, and gradually to the market throughout the physical gold investment Gold shares, including the stock of gold mines, and mining enterprises stocks, overseas gold futures extended areas. He believes that the gold fund products forming marks including gold futures, gold bonds, Gold funds derived from the three major research and development work will be fully under way. gold market from the cash market to derivatives market changes in the engine will be formally launched.

The industry also said that apart from stepping up research and development funds varieties gold, Shanghai International Group also intends to take over the establishment of the China Gold fund companies.

According to reports, as early as in June 2006, China Gold Association has as main sponsors, Synergy Group and the other commercial banks, trust companies and other financial institutions, jointly launched preparations for the formation of the “Golden China Fund Management Limited.” Plans to set up a fund management company’s registered capital of one billion yuan in size. According to the plan, the proposed establishment of the China Gold Fund Management Ltd. major investment, including gold derivatives transactions, Gold for the development of enterprises. “As China Gold Association, the Gold Group, and several other major institutions, worried that the gold fund companies on capital requirements is relatively high, and there is a certain risk of the operation, therefore, Fund established gold companies that plan was shelved. “insiders said this. When several major institutional desire to withdraw from the Chinese gold fund company, the Shanghai International Group, expressed a desire to access the site.

But the concern is that by the end of 2006. Shanghai International Group General Manager Pan Longqing gold investment in a high-profile summit, financial investment holding company in the gold market, the process will open promising. Shanghai International Group is studying the gold fund products. And recently, the Chinese vice president of the Association of gold in the open Hao occasions, China through the development of specialized gold investment fund, which could effectively improved gold market investors and improve market liquidity, and for the future of the gold market opens up further increase transaction varieties, expand the scope of investors, and so on to lay a good foundation for China should set up its own gold fund companies.

Copyright Fund China 2009.

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