SINGAPORE Aug 14 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
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
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)