Gold trade opens in Beijing

China Merchants Bank (CMB) began sales of two, five and ten ounce gold bars in Beijing and plans to expand sales to Shenzhen soon, allowing individual investors to invest in gold. Prices for the bars are set by the London Metal Exchange and the Shanghai Gold Exchange. The gold bar trade began in China in November 2002, when department stores began offering bars in Beijing. CMB began a trial of gold bar sales in Chengdu, Sichuan province last November and began sales of gold on paper last November in Shanghai. Sales have grown by 40% month on month. The Shanghai Gold Exchange plans to launch trading of 50-gram gold bars soon. It currently offers sales of 1-kilogram bars.