Gold producers in the Chinese mainland reported a growth of more
than one-third in profits in the first three quarters of this year,
as a result of robust output and bullish prices of the precious
metal, according to an industry organization.
Profits of around 300 gold
producers under statistics of the China Gold Association totaled
2.03 billion yuan (US$245.17 million) during the period, jumping by
35.3 percent from a year earlier.
Their output value grew by
14.18 percent year-on-year to 22.81 billion yuan (US$2.75 billion)
during the period.
Gold output amounted to
148.66 tons from January to September this year, an increase of
9.74 tons, or 7.01 percent, from the same period last year,
statistics showed.
Output in September alone
stood at 18.89 tons, up from 18.47 tons in August.
This is the third
consecutive month-to-month increase since July.
"Domestic manufacturers
have been speeding up gold production to earn more profits, driven
by high gold prices," said Lu Wenyuan, secretary general of the
gold association.
Lu predicted total gold
output in the mainland would reach a record high of 210 tons this
year, up from 200.598 tons last year.
The mainland now ranks No
4 in both gold output and demand in the world.
Gold demand in the
mainland amounted to 112.5 tons during the first half of this year,
up from 97 tons a year ago, according to the World Gold
Council.
Roland Wang, the
Beijing-based manager of the gold council, said the council will
release figures on the third-quarter gold demand in the mainland
next week.
Total gold demand in the
mainland is expected to rise to 220 tons this year from 207.6 tons
last year, Wang said.
The gold council predicted
in September that the mainland's gold demand would reach 600 tons
annually in coming years with the ongoing gold market deregulation
to allow individuals to buy gold bullions for investment, and
China's steady economic growth.
Jewellery now accounts for
more than 90 percent of total gold demand in the mainland.
Demand for gold jewellery
reached 109 tons in the mainland during the first half of this
year.
The mainland is opening
the gold investment business to individuals step by step.
The mainland's big four
State-owned commercial banks - the Industrial and Commercial Bank
of China, the Agricultural Bank of China, the Bank of China and the
China Construction Bank - are expected to receive approval from the
central government to open the business later this year or next
year, according to industry sources.
Analysts say domestic gold
prices will continue to fluctuate at relatively high levels in line
with changes in the international market because of a slew of
factors, such as the weak US dollar, lofty oil prices and fears of
terrorism.
Price of the Au99.99 gold
bullion at the Shanghai Gold Exchange, representing the benchmark
in the mainland gold market, closed at 113.95 yuan (US$13.76) per
gram yesterday, up from 112.25 yuan (US$13.56) on Wednesday.
The world's gold prices
now hover around US$426 per ounce, up from US$400 in early
August.
Trading volume at the
Shanghai Gold Exchange amounted to 46.3 tons in the first nine
months of the year, up 61.78 percent from a year earlier.
The trade value surged by
73.12 percent year-on-year to 49.69 billion yuan (US$6.00 billion)
during the period.
The exchange, launched in
late 2002, now has 108 members including commercial banks and gold
producers and processors which conduct spot transactions using
renminbi.
Previously, Chinese gold
producers had to sell all of their gold to the People's Bank of
China, the central bank, under the central government's tight
control on the domestic gold market.
The central bank was
responsible for allocating gold to users of the metal.
(China Daily
November 5, 2004)