Thursday, 23rd September 2004 (2970 views)

Guangzhou in South China has begun offering gold spot trading for individuals and has become the sixth city to do so.

The service was officially opened yesterday by the Guangzhou Branch of China Merchants Bank (CMB).

Tan Yezheng, an official with the private bank business department of the Guangzhou Branch of CMB, told Interfax: "Before we officially started this business, many individual customers called us and expressed considerable interest, and since the service has become available, so far over 100 people have been granted trading subscriptions."

According to Mr Yezheng, CMB is the first domestic bank to offer private gold trading business and the bank is confident that the trading market in the area had a great potential for individuals.

The branch sells gold bars in three forms - two, five and 10 ounces and prices will be based on the London Metal Exchange and the Shanghai Gold Exchange.

To complete the trading procedure, clients will just need to fill in an anonymous purchase form as gold is only sold through bank counters.

At present there are no plans to offer deferred or futures trading, but individual bank loans based on gold would probably be set up by the end of 2004.

 

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