Tuesday, 18th January 2005 (2749 views)

The Beijing-based Agricultural Bank of China has become the second Chinese bank to offer trading in gold certificates to its customers.

The company, which is a state-owned commercial bank, confirmed yesterday that it would offer financial instruments with returns based on gold prices.

Gold trading services will be launched before the Spring Festival next month.

Customers will be able to trade gold bullion through special accounts, without ever actually coming into contact with the metal. These transactions are named "paper gold."

Zhou Xiaochuan, governor of China's central bank, indicated that banks would be encouraged to provide gold trading services as part of an effort to expand investment options.

The Bank of China commenced gold trading in December last year.

 

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