Zijin Mining Group Co., China’s largest gold producer, rose to almost a nine-month-high in Hong Kong trading as gold futures jumped to a record in Shanghai.
Zijin gained as much as 12.7 percent to HK$7.44, the highest level since January, in Hong Kong trading at 10:15 a.m. The shares rose by the 10 percent daily limit in Shanghai trading. Zhongjin Gold Co. rose 6.6 percent to 41.80 yuan in Shanghai trading.
Gold gained to a record today in Shanghai, tracking international gold prices, as investors sought an alternative investment to the dollar. The dollar yesterday slid to an eight- month low against the euro on speculation the U.S. Federal Reserve will ease monetary policy.
“Zijin and other gold stocks are up because international gold prices surged to a record during the Chinese holiday” this week, said Owen Liang, a Shenzhen-based analyst at Guotai Junan Securities Co.
The metal for December-delivery on the Shanghai Futures Exchange gained as much as 1.3 percent to 286.79 yuan a gram, before trading at 286.74 by 9:55 a.m. local time. Gold for immediate delivery reached a record $1,364.77 an ounce yesterday.
Penalty for Spill
Shandong Gold Mining Co., a Shandong province-based producer of the metal, rose as much as 10 percent and traded 8 percent up at 60.35 yuan at 9:53 a.m. in Shanghai.
Zijin may also be benefiting from a less-than-expected fine imposed by the Fujian provincial government for its July toxic metal waste spill. The company was fined 9.6 million yuan ($1.4 million) for the spill that poisoned almost 2,000 metric tons of fish, the Fujian province-based company said yesterday.
Zijin may be fined as much as 500 million yuan for the leak, WuKan, a Shanghai-based fund manager at Dazhong Insurance Co., said before the announcement.
“I am not concerned of the government fine as the amount is small compared with the anticipated profit of Zijin,” Guotai’s Liang said.
The Fujian environmental protection agency has ended its investigation and the company needs to take more measures to clean up the pollution, it said yesterday.
