SMM6, May 5: as trade relations between China and the United States tighten, gold has become an ideal hedge tool, as a result of the rise in Chinese gold stocks, Bloomberg reported.
Gold mining companies have led the way in the MSCI China index (MSCI China Index), compiled by Morgan Stanley International Capital (MSCI) over the past five days.
Among them, shares of Hong Kong Zhaojin Mining Co., Ltd., Shandong Gold Mining Co., Ltd., rose 9%.
Shares in Gansu Rong Hua Industries, Yintai Resources and Chifeng Gold have all risen rapidly since the end of May, with all three stocks growing by more than 20 per cent during the 5.27-6.5 period.
Rong Hua industry
Gold futures have also been in good shape lately.
The Shanghai Gold 1906 contract has also been rising since the end of April, all the way to a high of 1906.
Alvin Cheung, director of Prudential Securities in Hong Kong, said that with the White Paper on "China's position on Sino-US Economic and Trade negotiations" held by the New China State Office, the prospects for Sino-US trade negotiations have become complicated and confusing, exacerbating risk aversion in the market. This is why investors are willing to choose safer gold stocks.
"[investment must see] Trade friction news flying all over the metal how to win in chaos?
"Click to enter the registration page
Scan QR code and apply to join SMM metal exchange group, please indicate company + name + main business