China will soon have its first gold bullion ETFs, an important development for a country that has long valued gold as a store of value and is now the world’s biggest producer of the yellow metal.
Hua An Fund Management Co. and Guotai Asset Management Co. completed their plans for ETF products that will trade on the Shanghai Exchange, according to a report on Friday published by the state-run Shanghai Securities News reported and picked up by Dow Jones newswires.
The story, citing unnamed sources, said the official at the China Securities Regulatory Commission met with representatives of the bourse and the two fund management companies to discuss the launch. It wasn’t clear when exactly the funds might launch.
China is the world’s biggest gold producer, according to Bloomberg News, and its ranks as No. 7 in terms of gold reserves held by the Chinese central bank. Gold is widely viewed as a legitimate store of value in the country of 1.3 billion—all the more so currently when the global economy is still recovering from its worst crisis since the Great Depression.