China's First Gold Fund Reaches $500M Target
Source: Commodity Online (1/12/11)
"World's largest QDII fund reached its target within a month."
Lion Fund Management, which last month launched the first gold fund in China, said it won regulatory approval for the fund under the country's Qualified Domestic Institutional Investor scheme, which allows Chinese money to be invested overseas.
The company plans to invest in gold-backed exchange-traded funds on the global market.
It was the biggest QDII fund in the last three years, thanks to investors' enthusiasm for gold, the company said.
Inflation worries and limited investment options have fuelled demand for gold from Chinese investors, especially as the precious metal staged a stellar record-breaking rally in 2010.
China, the world's biggest gold producer, is catching up with India, with demand this year expected to surpass 600 tons.