MARKET REVIEW OF THE SGE IN JUNE 2004

In June, the Shanghai Gold Exchange traded 29,716 kilograms of gold. The gold traded in the first six months of 2004 increased by 39.49 per cent year-on-year to 144,415 kilograms, with the trading value up 60.86 per cent to 155.25 billion yuan. Platinum traded in the SGE was 1,367 kilograms in June. In the first six months of 2004, the SGE recorded 7,576 kilograms of platinum trading, valued at 1.757 billion yuan.

In June gold price exceeded US$400 by fund buying, influenced by the U.S. release of its worsening deficit under current account and the worries about terrorist attacks in the period of Iraq power transfer. However, at end-June the gold price retreated to below US$400 amid the news of early power transfer in Iraq.

Au99.95 in the SGE opened the month at 104.70 yuan per gram, and closed at 104.35 yuan, down 0.70 per cent. Platinum opened the month at 231.20 yuan per gram, and closed the month at 216.10 yuan, down 7.27 per cent.

In June, the clearing volumes for gold and platinum were 15,484 and 1,345 kilograms respectively. The clients in the SGE reached 630 with 18 new entrants.