Shanghai: China has established a fund that is expected to raise about $16 billion for gold-related investment as part of its "Silk Road" initiative to develop trade and transport infrastructure across Asia and beyond, official media reported.
The fund, which will be run by a new company to be set up by gold producers and financial institutions, is expected to raise an estimated 100 billion yuan ($16.13 billion) in three phases, Shanghai Securities News reported at the weekend.
Two leading gold producers, Shandong Gold Group, the parent of Shandong Gold Mining Co Ltd , and Shaanxi Gold Group will take stakes of 35 percent and 25 percent respectively, with the rest owned by financial institutions, the newspaper said.
The fund`s activities could take in the launch of gold-backed exchange-traded funds and buying stakes in listed gold companies and mining firms.
President Xi Jinping said earlier this year he hoped annual trade with the countries involved in Beijing`s plan to create a modern Silk Road would surpass $2.5 trillion in a decade.
China is the world`s biggest producer of gold and a top consumer of the precious metal.
In 2014 it was the second-biggest consumer of gold jewellery, bars and coins and it took the first place from India in the first quarter of this year, according to the World Gold Council.
