China And India Gold ETF's

China One More Step Closer To Gold ETF Launch

China will open up to the global gold market, increasing its impact and attracting more foreign banks to get involved in China's domestic market,they said.

Opening further it's huge domestic gold market to global community, China announced provisional rules and regulations for the operation of gold ETF's.

China Securities Regulatory Commission, or CSRC however didn't set any specific timetable for the listing of gold ETFs.

Analysts said authorities need to thoroughly study how to regulate gold ETFs traded on stock exchanges that track the price of gold and have most of their assets invested in gold.

They added that these moves are part of government efforts to boost the development of both the gold market and the capital market and aimed to protect investors' interests in such new products.

China will open up to the global gold market, increasing its impact and attracting more foreign banks to get involved in China's domestic market,they said.

Gold ETFs are operated in most of the world's major financial markets, with a combined asset scale of more than $140 billion as of the end of July 2012, according to a CSRC statement.

China's rapidly growing gold market has created conditions for the development of gold ETFs, said the statement.

China is the world's biggest gold producer and consumer, with its gold output reaching 360.96 metric tons in 2011, according to the China Gold Association.

The value of gold product transactions surged 53.45 percent year-on-year to 2.48 trillion yuan ($395 billion) at the Shanghai Gold Exchange, the country's major gold bourse, in 2011, the association said.

India Gold ETF's Hold 40 Tons Of Gold

Analysts however said, the 40 tons of ETF gold is only about 10 per cent of the 398 tonnes of gold imported in the April-October 2012 period.

After five years of it's introduction in India, all 14 Gold ETF's together holds a staggering 40 tons of gold.

According to reports, Goldman Sachs Gold ETF leading the pack with 11,218 kg, followed by RShares Gold ETF with nearly 9,800 kg, and Kotak Gold ETF and SBI Gold ETS hold about 4,500 kg each.

Analysts however said, the 40 tons of ETF gold is only about 10 per cent of the 398 tonnes of gold imported in the April-October 2012 period.

The first gold ETF was launched by Benchmark Mutual Fund (now Goldman Sachs) in early 2007 and now there are 14 mutual fund houses present in this segment managing gold assets worth nearly Rs 12,000 crore, as per the data available with industry body Association of Mutual Funds in India (Amfi).

Comparatively, smaller gold ETFs from UTI and HDFC fund houses manage gold weighing less than three tonnes each, individual portfolio for December 2012 shows.

One tonne is equal to 1,000 kg. ETFs allow investors to trade in the metal in non-physical form electronically on stock exchanges, also aim to provide investors returns linked with domestic price of physical gold, but holdings are maintained in demat form.

Recently,India’s central bank the RBI recommended that to gainfully use the gold reserves with Indian ETFs and reduce the demand for gold, a certain part of the total corpus of the fund could be loaned to the permitted categories of bulk gold importers.

It also linked gold ETF schemes offered by mutual funds to gold deposit schemes of banks with a view to increase availability of physical gold in the market.

Sumber : Google