The Guotai Gold ETF and the HuaAn Gold ETF fell 0.6 percent and 1 percent, respectively on their first day of trading, according to local press reports.

The press report reported that HuaAn said: “The transaction value of the HuaAn Gold ETF totalled 369 million yuan (€45.3 million), with a turnover rate of 30.68 percent, making an active trading day.”

Despite the fall in gold prices the launch of the two ETFs is yet another sign of China’s dominance of the Asian ETF scene. In May this year China saw several high-profile launches, including Guotai’s listing of the Nasdaq-100 ETF.

According to an article on IU.eu: “The launch gathered an unprecedented amount of international coverage for a Chinese fund, with many commentators hailing it as a major step in opening international markets to Chinese investors.’

Chinese gold investment demand has risen from 15 tons in 2006 to 274 tons last year. According to the World Gold Council China is going to overtake India as the world’s biggest buyer of gold this year.

However, selling in gold has not stopped and discussions about the Fed’s tapering program continue, according to a podcast from Hardassetsinvestor (HAI) yesterday.

Sumit Roy speaking on the podcast said that we should not rely on China to bail out gold. “China is slowing down and it has had the lowest economic growth rate for two decades.”

Gold fell 0.7 percent to $1,323.96 an ounce this morning.

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