The Provisional Measures Regarding the Administration of Spot Trading of Gold by Private Investors published by the SGE stipulate a private investor can participate in spot trading and even claim gold at designated warehouses in Shanghai, Beijing and Shenzhen via any SGE financial members or other agents approved by the People's Bank of China.

SGE will charge private investors a fee of 0.06 per cent plus commissions with a maximum of 0.15 per cent, say the provisional rules.

Wong Hasang, a native of Hong Kong and chairman of the board of Guizhou Xixibao Mining Co., said the lower SGE threshold would lure more small private investors to spot trading of gold but that he himself was not interested for the time being.
"Investing in gold is not for the faint-hearted," said Wong. "You need to have a speculative frame of mind because the risk in investing in gold is high." Wong said he followed the gold market assiduously because many of his friends in Hong Kong invest in gold.

Cheng Fumin, president of the China Gold Association, said sales of gold had risen since the beginning of the year.

Sales of gold bullion and gold bars account for more than one tenth of gross gold consumption in China.

"I think more investors will be attracted to spot trading and the number of transactions will increase as the SGE opens its doors wider," said Cheng.

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