Friday, 23rd December 2005 (3825 views)

China is planning to liberalise its import and export of gold.

The People's Bank of China published new draft rules on its website to encourage companies to suggest responses. The proposals would allow companies with more than £2.1 million of capital to start a gold trading firm.

Currently, the sale and purchase of the precious metal is dominated by the country's four largest commercial banks and a handful of firms. Prior to 2003, only the People's Bank of China was able to import gold into the country.

The bank has gradually liberalised the industry over the last two years, according to the Shanghai Daily. In 2003 it allowed the China Construction Bank, the Industrial and Commercial Bank of China, the Bank of China and the Agricultural Bank of China to partake in the trade.

A year later, the People's Bank allowed six other companies to begin importing gold, including EXP Corp and China National Pearl Diamond Gem.

The metal can already be traded freely at world prices on the Shanghai Gold Exchange.

 

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