Bloomberg: Huaan’s China Gold ETF Seeks $400 Million After Bullion Slumps

Huaan Asset Management Co. aims to attract as much as $400 million in initial funding for one of China’s first two gold exchange-traded funds as a drop in prices attracts buyers in the second-biggest consumer of bullion.

The product, to be listed on the Shanghai Stock Exchange, will track the performance of spot contracts on the city’s gold bourse, Xu Yiyi, the fund manager who will run the ETF, said in a telephone interview. Shanghai-based Huaan has yet to set a date to market the fund to investors, he said.

Gold sank into a bear market in April, after rallying for 12 years, amid bets the Federal Reserve may taper stimulus. While the rout hurt investors including hedge fund manager John Paulson and withdrawals from exchange-traded products set a record pace this year, many buyers in China viewed the slump as chance to stock up on jewelry, coins and bars.

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