Zhongjin Gold 2011 Q1 profits likely to rise more than 50%
BEIJING - Zhongjin Gold Corp, China's second-largest bullion producer by market value, said on Wednesday that its profits are likely to rise by more than 50 percent in the first quarter of this year.
Soaring gold prices and better business management helped boost its profits, the company said in a statement filed with the Shanghai Stock Exchange.
A growing number of Chinese investors bought gold to protect their wealth from high inflation, which hit 4.9 percent in February, exceeding the government's full-year target of 4 percent.
Analysts expected consumer prices to climb to a new high of 5.2 percent in March.
Negative real interest rates also prompted households to divert savings to other investments, leading to rapid price gains in gold products.
The company's net profits more than doubled to 1.13 billion yuan ($171.21 million) last year, according to its 2010 earnings report.
Shares of the gold producer gained 0.68 percent to 37.14 yuan on Wednesday.