China Officially Enters The Gold Market: Full Release Of PBoC's Plan To Expand And Develop China's Gold Infrastructure

China Officially Enters The Gold Market: Full Release Of PBoC's Plan To Expand And Develop China's Gold Infrastructure
Submitted by Tyler Durden on 08/03/2010 04:24 -0500

The moment many gold bulls have been waiting for - the Chinese Central Bank has just released a directive informing everyone it is commencing the development of a health gold market. In the release (below), the PBoC stressed the need to develop the market to serve the overall situation of China's gold industry, based on improving the competitiveness of China's financial markets, effectively strengthening innovation, and promoting the formation of multi-level market system. The PBoC has asked the Shanghai Gold Exchange, Shanghai Futures Exchange and commercial banks to become actively engaged in developing a national gold market. With China owning a mere $1,064 billion worth of gold (sixth in the world and well behind both France and the GLD ETF in terms of holdings), which represent just 1.6% of its reserve holdings, there is only one way to interpret this borderline revolutionary press release. China has now officially entered the gold market.

Full PBOC release google-translated from Chinese: (MasterBlog: gotta love it that you can now read pretty much anything on the web with Google Translate - even if it's not perfect...)

Improve the market system   To promote the healthy development of the gold market

Recently, the People's Bank, Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Finance, State Administration of Taxation and the Commission jointly issued the "gold on the market for a number of opinions" (silver ?2010? No. 211), clearly the gold market The general idea of future development and major tasks.

Comments stressed the need to fully understand the gold market to promote the importance of healthy development. That featured the gold market is conducive to further improve the financial market system, improve the competitiveness of financial markets; help to promote industrial structure adjustment and upgrade of gold, the pace of industrial development; help broaden the investment channels to meet the residents of investment demand.

Opinions should effectively clear the gold market for development. Stressed the development of the market to serve the overall situation of China's gold industry, based on improving the competitiveness of our financial markets, effectively strengthening innovation, promote the formation of multi-level market system. Asked the Shanghai Gold Exchange, Shanghai Futures Exchange and commercial banks to do good work related to the gold market.

The view that the gold market to focus on strengthening the service system. Actively promote the gold market trading and disaster recovery and other infrastructure, rich market trading, improve the standard of the gold market determined system, improve storage and transportation system, the gold market, gold market to improve and strengthen the clearing services.

Views clearly, the gold market to further improve the system and related policies. Steady progress in the gold market laws and regulations and other related systems. In tax policy, the Shanghai Gold Exchange and Shanghai Futures Exchange, the gold under the existing provisions of the tax policy research to promote sound investment and commercial bank gold gold business tax policy. Expansion of import and export volume of gold qualified commercial banks to further develop the gold leasing market, widening the supply channels for physical gold. Clearly necessary to improve the gold market currency policy to promote the gold market opening, really good job in the gold market financing.

Comments stressed the need to effectively prevent the risk of the gold market.  That relevant departments should earnestly perform their duties, increase communication and coordination, and strengthen supervision of the gold market. Asked commercial banks to increase risk control, and strengthen the relevant system. Required intermediaries to strengthen management of self-discipline, standardize the conduct of its members, to maintain order in the gold market.

Opinions, we must protect the interests of investors. Required to take various forms, enhance investor education and to strengthen the training of employees in the gold market, improve the quality of employees, regulate the behavior of the gold market players.

Read the article here:
http://www.zerohedge.com/article/china-offically-enters-gold-market-full-release-pbocs-plan-expand-and-develop-chinas-gold-in?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+zerohedge/feed+(zero+hedge+-+on+a+long+enough+timeline,+the+survival+rate+for+everyone+drops+to+zero)