The Shanghai Gold Exchange is planning to launch exchange-traded funds (ETFs), allowing Chinese investors to gain exposure to the precious metal without holding physical assets, Bloomberg reported. Wang Zhe, chairman of the Shanghai Gold Exchange, announced the plan to a forum in Shanghai, adding that “[t]here are some complexities, as the central bank is in charge of gold management, while we still need to go through the procedures for launching new exchange products.” Chinese investors must currently purchase physical gold or trade or buy contracts traded on the exchange. China’s gold demand has surged in recent months, recording a 123% jump in investment demand in the first quarter of 2011. The new announcement comes shortly after the Hong Kong Mercantile Exchange (HKMEx) launched its gold futures trading platform last week.
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