Gold ETF Work Seminar has been jointly held by Shenzhen Stock Exchange (SZSE) and Shanghai Gold Exchange (SGE) on October 25, 2013. As innovative fund products that cross both markets of securities and gold, Gold ETF elevate the operation standard of ETF products in China, and offer a good type of investment products for numerous gold investors in China.
Xu Luode, Chairman of SGX expressed that, even though the debut of Gold ETF products in China came 10 years later than that of the first Gold ETF in the world, Gold ETF products in China were believed to surpass the latter in that China was the biggest gold producer, consumer as well as potential investor. With a steadier gold market and more sophisticated investors, the development space for Gold ETF products was immense. He pointed out that the launch of Gold ETF by SZSE would further propel the effective interaction among the markets of gold and securities nationwide, and financial markets in Shanghai and Shenzhen, was thus a beneficial probing deepening the financial reform in the country. As the biggest gold exchange in the world, SGX dedicated itself to the innovation of exchange products, diversified services, and association with gold exchanges in the major financial markets of the world. SGX would give a full play to the core pivot role in the gold market in China and constantly drive the sustainable and sound development of gold market in China.
Li Feng, Vice Manager of SZSE, denoted that it was SZSE’s mission to build multi-layer capital market. In the light of the strategic deploy of the Party Central Committee and State Council, and under the leadership of China Securities Regulatory Committee, multi-layer capital market witnessed a sustainable and healthy development in recent years. As of September, 2013, with the market capitalization of companies listed on SZSE reaches of CNY8.9 trillion, SZSE ranked the 11th among the exchanges in the world. With 1536 listing companies, SZSE ranked the 12th exchange in terms of the number of public companies in the world. The extent of capital market serving the real economy has been enhanced in dept and width. SZSE has been actively pushing forward the development of listed fund, and established an influential fund brand --Lefu Fund, exploiting the capital market in dept and width. At the beginning of this year, SZSE put forward the objective of forging fund supermarket. Currently, 295 funds have been listed on SZSE, managing CNY155.6 billion worth of assets in total. Fund product system that includes close-end fund, LOF, ETF, Classified Fund has been established, covering different types of investment. He signified that SZSE has been prioritizing the development of Gold ETF products, and launched research on Gold ETF long time ago. As an important type of product in the Fund Supermarket, Gold ETF extends the product layout of exchange fund market, connects markets of securities and gold. Being transparent, convenient, and with good liquidity, Gold ETF greatly facilitated the investors’ participation in gold investment. SZSE would further work with SGX and other bodies of the market to improve the trading mechanism of Gold ETF and enhance the product vitality.
Liu Xiaoyan, General Manager of E-fund Management Co., Ltd. expressed that the minimum investment unit for Gold ETF was 100 units, approximately 1 gram of gold, worth of CNY260, enjoyed a much lower investment threshold comparing with other gold investment products in China. Gold ETF, the trading fee of which is about one thousandth with tax exempt, enjoys the advantage of low-cost. Meanwhile, the gold contract of Gold ETF can be leased to reputable institutions for leasing income, making interests out of gold. Such product design makes E-fund Gold ETF even more attractive.
On the seminar, representatives from securities companies, gold producers and gold consuming companies and insurance companies and other institutions exchanged opinion substantially on such issues as market development, product design, investment strategy, and global experience of Gold ETF. The participants held that Gold ETF has long-term vitality in that it was not only the best gold investment choice for gold investors in China, but also an important type of asset allocation for institution investor in the long-run.
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