Source: CCTV.com

03-25-2008 11:33

Chinese commercial banks are now allowed to trade gold futures in the domestic market. It's the first time domestic banks have been granted permission to trade in the futures market.

Chinese commercial banks are now allowed to trade gold futures in the domestic market.

The Chinese banking regulator said on Monday that domestic banks that meet certain requirements, such as having capital adequacy ratio of more than 8 percent, can apply for a trading permit. Besides, they have to establish separate operation systems while conducting gold futures trading.

The watchdog said the move aims to further improve commercial banks' competitiveness against overseas banks. Experts say the involvement of commercial banks can also provide more liquidity and stability to the market. China gold futures trading was launched in January, but domestic banks were barred from trading.

Editor:Xiong Qu