China May Reduce Gold Import Restrictions

Bloomberg reported that China’s central bank has circulated a draft plan that looks at easing the country’s gold import restrictions. If the plan goes through, the premium that Chinese buyers pay for the yellow metal may be reduced.

As quoted in the market news:

The People’s Bank of China drafted a plan that will open up gold imports to qualified miners as well as all the banks that are members of the Shanghai Gold Exchange, according to the people, who asked not to be identified because the proposal hasn’t been made public. China Gold Coin Inc., a maker of commemorative gold and silver coins, could also qualify to import bullion, they said.

Chinese regulators are pushing to open up the country’s gold trade and lure foreign investors as part of its broader effort to link the mainland to global markets. The country began offering international institutions access to yuan-denominated gold contracts in Shanghai’s free-trade zone in September, a move that may extend its influence over prices while boosting the role of its currency in global trade.

Click here to read the full Bloomberg report.