TD Securities reports that the Shanghai Gold Exchange (SGE) has accepted four major Chinese life insurance companies as members in a new pilot program. This move could significantly increase institutional demand for gold.
The inclusion allows these insurers direct access to the exchange to purchase gold. This policy shift could expand the network of domestic buyers. Collectively, the four firms manage nearly CNY13 trillion in assets, which is almost two-thirds of the potential demand that could arise from this program.
TD Securities suggests this development could create a “massive new buying impulse” for gold. They believe institutional capital will increasingly flow into the precious metal as the regulatory environment evolves.
