China has put the Huatong Nonferrous Metal Trading Center Wholesale Market in charge of the country's silver trade, an official from the State Economic and Trade Commission (SETC) said today.

No other markets are allowed to operate silver trade without permission, except for trading of silver coins and silver products, said Xiang Xin, vice-director of the trade and market department

under the SETC.

Xiang noted that the silver trading market will be run on a trial basis before December 31, and during the period the People's Bank of China will go on buying and sell some silver in a unified

way.

After January 1, 2000, the trading market will run full-scale, and all the unified purchase and sale of silver will be abolished, said Xiang.

The Shanghai-based Huatong was opened in September 1998 by the members of China Huatong Materials Group.

Early this month, the People's Bank of China released a notice to ease management on silver and allowed silver to be traded on open market.

Xiang said that silver is a precious metal and its open trading should be put in good order. In the first stage, the trading will only be made on the spot and no futures business is allowed.

He also defined the traders as silver manufacturers, silver users, circulating firms, commercial banks, and the People's Bank of China and its designated units.

After the opening of the silver market, the policy of exempting value-added taxes on silver manufacturers and funds appropriated for use by them will be abolished, said Xiang, adding that the country will encourage the export of silver and limit the import. (Xinhua)