Gold -backed funds in China attract investors

Gold -backed investment funds in China – The largest alloy market – is experiencing increasing growth with record levels of metal records, investors looking for alternative assets and modifying local rules to expand access to these funds. The possession of local funds increased by 17.7 tonnes in the first three weeks of February, with the record of 20.9 tonnes the record of 20.9 tonnes and was registered last October, according to the world golden board data funded by mining and gold production companies. Gold is one of the most important most important merchandise over the past year, as it has jumped by more than 40%, despite the stopwave this week. The increase in gold prices is increasing with the support of coordinated purchases by central banks – including Chinese authorities – and reduced interest rates by the Federal Reserve, and a wave of demand for safe ports driven by US President Donald Trump’s commercial and controversial policies affecting market stability. In addition to the global factors, the gold market in China got an extra boost earlier this month, following the announcement of a pilot program that Chinese insurance companies can buy the metal for the first time. China Asset Management, this shift has contributed to strengthening the recent flow to gold -ready investment funds. He said: “Insurance companies can increase the purchase of gold when prices fall, which offers market support.” The impact of the rapid increase in gold prices on the consumption of jewelry in China, but the investment demand has shown that it is flexibility in light of the dull performance of traditional assets, such as local stocks, along with the weak yuan. China is also facing a real estate crisis that negatively affected the prices of the home. Strengthening the demand for gold, the largest in the country, said: “Investors realize the ability of gold to face the low value of the currency and diversify the risk.” He explained that the fees received by the management of the “Hwan” fund range from a price to a sixth of the alloy storage fees. Investment flow to the gold funds distributed in China falls within a global trend, as global interest in the traded investment funds supported by alloys has risen by 81 tonnes since the beginning of the year, to the highest level since January 2024, according to the statistics of “Bloomberg”. The investment funds traded in gold, such as stocks, are traded, which allows investors to participate in the market without owning or saving gold. Although existing boxes in China are smaller compared to boxes in other markets, the part of the recent flow has had an increase. Gold prices expect many large banks to expect gold to rise for a longer period, which can increase the interest in the investment funds that can be distributed in China and abroad. Among these institutions, ‘Goldman Sachs’ set the target price of gold at $ 3100 an ounce by the end of the year, pointing out that the achievement of $ 3,300 is possible. The price of gold in the recent transactions was about $ 2865, which has recently been less than the peak level at 2956.19 dollars. Bosera Gold ETF, the country’s second largest fund, said the investment of Chinese investment institutions in gold remains low compared to its counterpart abroad. The experimental program enables insurance companies to invest only 1% of their total assets in gold. This is compared to a rate of between 7% and 10% for global insurance funds focusing on long -term investments or sovereign funds, according to Wang of the “Busira” fund. He said: “Local investors continue to gradually increase their possession of gold. China is the largest consumer and gold producer, giving it a greater influence on the gold market.”