China Plans to Help Bullion Producers Expand Overseas, Central Bank Says

China “will place heavy emphasis on supporting large-scale gold producers in their development and overseas expansion plans,” the central bank said in the statement.

Banks should extend credit lines to gold producers and offer loans for overseas acquisitions, the central bank said today in a statement on its website. The government will “support” the companies when they issue corporate bonds and help reduce financing costs, it said, without clarifying what that meant. 

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Our Take:

This is part of a very rational move to increase precious metal reserves while slowly reducing US bond purchases.