Chinese regulators have approved the first mutual fund to invest in gold, as inflation fears stemming from loose monetary policies in the U.S. are driving interest in the commodity.
Lion Fund Management’s application to launch the Lion Global Gold Fund has been approved, the firm announced Monday.
The fund will invest in overseas gold-backed exchange-traded funds, under the Qualified Domestic Institutional Investor scheme that permits Chinese investors to place their money overseas.
“The fund offers a brand new way to invest in gold, giving investors access to ‘golden opportunities’ globally,” Lion said.
Meanwhile, E Fund Management is awaiting approval for a gold fund of its own, also filed under the QDII scheme.