China encouraged to further boost gold reserves

By Zhang Fengming  |   2009-7-4  |     NEWSPAPER EDITION

CHINA should further increase its gold reserves to diversify reserve assets, industry veterans told a conference in Shanghai yesterday.

"China should boost its gold reserves," said Zhang Bingnan, vice chairman and general secretary of the China Gold Association. "An increase in holdings from both government and individuals are needed."

In May, China said it had increased its gold reserves by 454 tons to 1,054 tons, the first such disclosure in six years.

China is the world's fifth-biggest gold holder, following the United States, Germany, France and Italy.

Nonetheless, China's gold stockpile amounts to less than 2 percent of its total foreign reserves based on the metal's price of US$930 an ounce.

Zhang said China's gold sales were expected to rise this year, but he declined to give a figure.