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Industrial Bank Kicks off Personal Physical Gold Investment Nationwide

July 6, Industrial Bank held press conference jointly with Shanghai Gold Exchange in Diaoyutai State Guests Hotel, announcing to initiate the Personal Physical Gold Investment product through the platform of Shanghai Gold Exchange in a nationwide range.

In September 2005, in order to fulfill the “Three Changes” spirit for China gold market by Governor Zhou Xiaochuan as well as fully exert the risk-avoided function of gold market investment, PBOC announced to launch personal gold investment product in Shanghai Gold Exchange.

In December 2006, aiming to promote the development of personal gold investment business, PBOC announced to lower the standard of personal gold investment product from 1000g to 100g and expanded the dealing banks from ICBC to all member banks.

This time, Industrial Bank launched to the market two product categories for personal physical gold investment, AU9999 and AU 100g. AU9999 is the listed product opened to personal investors by Shanghai Gold Exchange and the bidding gold measures up the physical standard prescribed by Shanghai Gold Exchange. The dealing threshold of both categories is 100g. Investors can open accounts in any outlet of Industrial Bank and carry out transaction via Internet banking and outlet counters of Industrial Bank. The above two categories enable withdrawal of physical gold in need, and can be traded as common investment product, boasting features as low transaction entrance, transaction cost and flexible transaction manner.

It was said that Industrial Bank especially designed an advanced Gold Dealing Platform to carry out the agent business for gold investment categories in Shanghai Gold Exchange. The platform empowers gold dealing of AU9999 and AU 100g categories for individual clients as well as all gold dealing of listed products for qualified institutional clients in Shanghai Gold Exchange. Furthermore, the newly opened Gold Dealing Platform has saved interface for future products in Shanghai Gold Exchange, which will underpin a further cooperation of both sides.

Voice form Industrial Bank introduced that domestic investors' interest in gold market has been increasing in recent years due to the rapid expansion of international gold market and the soaring gold price, while the available domestic gold investment channels have not match up to the trend. Aiming this situation, Industrial Bank, the financial member with all-round agent qualification in Shanghai Gold Exchange, initiated the personal physical gold investment products jointly with Shanghai Gold Exchange in a nationwide range. The launch of personal physical gold investment product will expand the gold investment channels for domestic investors, satisfy the increasing market demand and promote the development of domestic gold market. Moreover, developing intermediary business including gold agent business will conduce to the domestic commercial banks' transition from traditional deposit-and-loan-oriented operational mode, help face the competition brought forth by the open-up of financial industry, and bring sustainable and steady profit gain.

Officials from PBOC and CBRC, Director of Shanghai Gold Exchange Sheng Xiangrong, Vice President of Industrial Bank Chen Dekang, and General Manager of Industrial Bank Financial Markets Chen Shiyong attended the press conference.