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On February 7, China launched a pilot program allowing certain insurance companies to invest in gold as part of their medium to long-term asset allocation strategies. According to the National Financial Regulatory Administration, the initiative seeks to expand the utilization channels for insurance funds, optimize the structure of insurance asset allocation, and strengthen insurance firms' asset-liability management capabilities. Ten insurance companies are participating in the pilot program, which allows gold investments through multiple channels such as spot contracts on the Shanghai Gold Exchange's main board, deferred delivery contracts, centralized pricing agreements, gold swap contracts, and gold leasing operations. Under the new policy, these firms can allocate up to 1% of their assets to bullion, which could translate into an estimated 200 billion yuan (US$27.4 billion) in gold investments, according to a report from Minsheng Securities Co. Chin...
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