Beijing, May 20: Shanghai gold exchange, China's only gold transaction market, is preparing to allow individuals to trade the metal by the end of the year, a report said today. "Domestic individual investors will hopefully be able to buy or sell gold later this year," Shen Xiangrong, president of the exchange, was quoted as saying by 'China daily'.

Shen said that the SGE was co-operating with China's four state commercial banks - the Agricultural Bank of China, Bank of China, the China Construction Bank, and the Industrial and Commercial Bank of China - to launch the new service.

The four banks have been approved by the Central Bank, The People's Bank of China (PBOC), to act as gold trade agents for domestic individual investors, the report said.
An information officer with the SGE, Gu Wenshuo, said, "The timetable is not set yet and is to be decided by the PBOC. So far we have got no official approval from the Central Bank."

Sources with the agricultural bank of China's Shanghai branch revealed that individuals would be able to open gold trade accounts at the bank once the new policies are enacted.

Small gold bullion and gold bars would be available at the bank's designated outlets, he said.
Bureau Report