The Chinese gold-backed ETF market continued to expand this year adding fresh, new demand to the gold markets. This year’s impressive rise in the gold price is attracting investors all across Asia as well.
Both total gold holdings and assets under management in Chinese gold ETFs rose to their highest ever levels last month, at 69.5t and US$4.2bn respectively.
Two Shanghai Gold ETFs, issued by CCB Principal Asset Management and Bank of China Asset Management, were listed in early September, expanding the choice for Chinese gold ETF investors to 11 funds.
But this was not the only driver for growth: total gold holdings in the pre-existing nine funds also increased last month, as Chinese investors’ strategic allocation to gold kept rising as a hedge against possible future economic and geopolitical uncertainties in spite of the weakened bullish momentum in the gold price.
Source: World Gold Council