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China Approves Gold-Backed ETPs as Domestic Buyers Chase Bullion

China approved two domestic exchange-traded products backed by gold as global holdings of the precious metal in ETPs dropped to a two-year low.

Huaan Asset Management Co. and Guotai Asset Management Co. received the China Securities Regulatory Commission’s permission to start the funds, which will be denominated in yuan, said Liu Jianqiang and Li Yebin, spokesmen for Huaan and Guotai. They will be traded like stocks on the Shanghai Stock Exchange, tracking movements of spot gold on the Shanghai Gold Exchange, Liu and Li said separately by telephone from Shanghai.