China's fourth gold ETF raises about $50 mln
SINGAPORE Aug 14 (Reuters) - Bosera Funds has raised $50 million for China's fourth gold backed exchange-traded fund that it aims to launch soon, at a time when investment demand for the precious metal has been sluggish in the world's biggest bullion consumer.
The fund, called Bo Gold ETF, raised 292.2 million yuan ($47.5 million), in line with internal expectations, according to an emailed statement sent by Bosera to Reuters.
An exact launch date is yet to be finalised but the ETF could start trading as soon as next month.
The ETF, which will be launched more than a year after getting regulatory approval, will invest in spot gold contracts and trade on the Shenzhen Stock Exchange.
The launch of the fund comes at a time when Chinese demand has fallen after a bumper year in 2013, when a sharp drop in prices prompted record purchases of jewellery, bars and coins.
Data released on Thursday by the World Gold Council showed that Chinese investment demand declined to its lowest in almost four years due to uncertainty over price trends, the hangover from last year's buying frenzy and a recent crackdown on bribery and corruption.
Total Chinese demand, including jewellery, halved in the second quarter from a year ago, the industry body said.
Four funds received the go-ahead from Chinese regulators in mid-2013. Only two - HuaAn Gold ETF and Guotai Gold ETF - started trading immediately, after raising a combined 1.6 billion yuan in their initial funding round.
E Fund Gold ETF, the third fund, raised 500.4 million yuan and went live in December.
Bosera's launch was delayed due to falling gold prices and some other "complex" reasons, a spokesman had told Reuters last year, without elaborating. ($1= 6.1520 Chinese yuan) (Editing by Muralikumar Anantharaman)
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