26 May 2015
China establishes gold fund as part of Silk Road initiative - Reuters
FXStreet (Mumbai) - A new fund established by China is expected to raise about $16 billion for investment into gold-related activities and business, official media reported on Monday.
The fund, which will be run by a new company to be set up by gold producers and financial institutions, is expected to raise an estimated 100 billion yuan ($16.13 billion) in three phases, Shanghai Securities News reported at the weekend.
Two leading gold producers, Shandong Gold Group, the parent of Shandong Gold Mining Co Ltd and Shaanxi Gold Group will take stakes of 35 percent and 25 percent respectively, with the rest owned by financial institutions.
The fund's activities could take in the launch of gold-backed exchange-traded funds and buying stakes in listed gold companies and mining firms.
The fund, which will be run by a new company to be set up by gold producers and financial institutions, is expected to raise an estimated 100 billion yuan ($16.13 billion) in three phases, Shanghai Securities News reported at the weekend.
Two leading gold producers, Shandong Gold Group, the parent of Shandong Gold Mining Co Ltd and Shaanxi Gold Group will take stakes of 35 percent and 25 percent respectively, with the rest owned by financial institutions.
The fund's activities could take in the launch of gold-backed exchange-traded funds and buying stakes in listed gold companies and mining firms.