Credit Suisse says upbeat on Chinese gold miners
HONG KONG (MarketWatch) — Credit Suisse said Monday said it was upbeat on Hong Kong and China-listed gold miners, saying the sector was now trading at close to historical lows when measured against gold prices. In its inaugural report on the China gold sector, Credit Suisse named China Gold International Gold Resources , Zhongjin Gold Corp. and Zijin Mining Co. as its top selections. “The divergence between physical gold prices and gold equities…has widened to multi-year highs,” the broker said. It also noted “strong foreseeable growth potential” amid industry consolidation in the coming years and new projects in western China. And while Chinese gold miners have lagged their global peers in terms of environmental practices, Credit Suisse said there were signs of improvement. However, it also said the government was unlikley to issued harsh measures for the sector to clean up its practices.
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