A local gold specialist said platinum transactions at the Shanghai Gold Exchange would help the price of platinum in China keep abreast of the international market and curb platinum smuggling.

The Shanghai Gold Exchange, China's first such exchange, opened on Oct. 30 last year. It mainly deals with transactions of au99.95 and au99.99 gold.

Gu Wenshuo, general manager of the exchange's general department, said platinum spot transactions enjoyed the same taxation as gold transactions.

The exchange was making preparations for platinum transactions, including the establishment of a new trading system and authentication of qualifications of trading members, Gu added.

The world output of platinum was only 1,533 tons in 2000, much less than the output of gold. The annual consumption of platinum in China exceeded two billion US dollars, the highest in the world. The price of platinum in China is 193 yuan per gram, higher than the price on the international market.

(Xinhua News Agency March 26, 2003)