THEME: CHINA/GOLD
As more proof that China is driving the gold boom, here is an article from the FT:

Li Ka-shing sets up new gold trading business
By Justine Lau in Hong Kong
Published: December 3 2003 10:38 | Last Updated: December 3 2003 10:38

Li Ka-shing, Hong Kong's richest businessman, on Wednesday set up a gold trading company called LOCO HK to take advantage of the boom in precious metals.

The company is wholly-owned by Mr Li privately and is based in Hong Kong, one of the biggest bullion markets in Asia.

Mr Li, who made his first fortune by making plastic flowers, is famous for his knack of spotting investment opportunities early. The tycoon, through his numerous companies including Hutchison and Cheung Kong, controls an empire spanning ports, telecommunications, property, retail, media, biotechnology, energy and other sectors.

While LOCO HK is the latest addition to the Li empire, the billionaire has been active in Hong Kong’s gold market for some time. Three years ago, he and his flagship conglomerate, Cheung Kong, jointly bought RNA, a local gold retailer and wholesaler. Mr Li personally owns 26 per cent of RNA, which has a real time electronic trading platform for precious metals.

LOCO HK has appointed RNA to be its adviser and will pay 30 per cent of its profit to RNA as fee.

Mr Li's investment comes at a good time. Bullion has risen from a low of $256 an ounce in 2001 to a seven-year high of over $400 this week, as a result of low interest rates, a weak dollar and global political uncertainties.

Daily trading volume in the Hong Kong’s gold and silver exchange has grown by about 30 per cent to around four tonnes in 2003 compared with the previous year, according to Herbert Tsang, a manager at local rival Chinese Gold & Silver Exchange Society, one of the world's first gold trading exchanges established in 1910.

"To create a gold trading company in Hong Kong is like opening a supermarket. Everyone can do it. But the question is whether people want to trade with a private company, or a more independent and long-established exchange," Mr Tsang said.
Looking Ahead: Markets come and go, but these truths of investing are forever