Monday, 11th April 2005 (3542 views)

Private investors are being allowed to buy and sell gold through the internet in China, in a new move to boost demand.

According to Reuters, gold purchases for investment were allowed from late March by the Bank of China and other selected banks belonging to the Shanghai Gold Exchange.

The import tax on jewellery has already been cut from 23.3 per cent to 21.3 per cent this year to help encourage the creation of jewellery factories in China.

Albert Cheng, managing director Far East for the World Gold Council (WGC) explained: "Investors in China can now buy and sell gold through Internet banking with certain banks which provide the service."

Using internet banking investors can transfer funds from their bank account into a gold savings account, meaning gold trading becomes much easier.

However some restrictions still remain, including import tax which local dealers need to pay to import gold jewellery into China.

It is though gold demand in China increased by 15 per cent last year to approximately 314 tonnes.

 

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