Money

Shanghai applies to PBOC to offer gold exchange certificates

(Agencies)
Updated: 2010-07-16 17:08

The Shanghai Stock Exchange has submitted a proposal to China's central bank for introduction of a gold exchange certificate developed with the Shanghai Gold Exchange, said Liu Ti, an official with the stock exchange.

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The gold exchange certificates, designed for institutional investors such as insurers and mutual funds, would be traded on the Shanghai exchange, Liu, director of the Shanghai Stock Exchange's innovation department, said at a Guosen Securities Co conference in the city of Qingdao today. They would be sponsored by the gold exchange instead of a fund as China prohibits mutual funds from investing in gold, Liu said.

China's largest stock exchange is also planning to introduce cross-border exchange traded funds, Liu said. The cross-border ETFs would push forward Shanghai's plans for foreign companies to sell shares publicly in the city, he said.