Several fund companies in China are readying ETFs to follow gold prices that would let more individuals invest in the precious metal, according to reports.
Guotai Asset Management, Bosera Asset Management, E Fund Management and Hua An Asset Management are preparing gold ETFs, Reuters reports.
Earlier this year, Hang Seng Bank launched the first yuan-denominated gold ETF in Hong Kong. [First Yuan-Denominated Gold ETF Begins Trading]
“China, the world’s largest gold producer, is on its way to overtake India as the top gold consumer this year,” Reuters reported. “China’s gold investment demand more than doubled between 2009 and 2011, contributing to a 70% jump in overall gold demand, according to the World Gold Council.”
It’s not clear whether the products would be backed by physical gold, according to the article.