Wednesday, 6th July 2005 (3514 views)

China has moved to relax rules governing the sale of gold bars, approving plans for four banks to begin offering them to their customers.

With China rapidly blossoming into a major consumer society, particularly with the emergence of a comparatively wealth middle class, the ability to invest money and to purchase materials such as gold has grown.

Two banks are presently able to offer gold-backed certificates – the Bank of China and the Commercial Bank of China – but sources have confirmed that these two institutions will be able to sell gold bar products – along with China Construction Bank and the Agriculture Bank of China .

"The China Banking Regulatory Commission has given an approval for these banks to start the business. The four major banks are preparing to launch gold bars for their customers in the near future," a regional dealer told Reuters.

The move could lead to a jump in consumption for the yellow metal in China, with the dealer predicting a ten per cent rise.

Officials have so far remained tight-lipped on the matter, but the country has been moving to encourage trade in the sector in recent years.

Last year Beijing moved to cut import tax on jewellery, with the consumption of gold and other precious metals continuing to rise.

 

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