(Updates with plans to borrow bullion in fifth paragraph.)
Oct. 20 (Bloomberg) -- Zijin Mining Group Co., China’s biggest gold producer by market value, fell the most in more than two weeks in Hong Kong trading as bullion prices dropped.
The shares declined as much as 9.5 percent to HK$2.76, the most since Oct. 4, and were at HK$2.83 at 2:06 p.m. local time, down 7.2 percent. The benchmark Hang Seng Index fell 2.7 percent.
Gold has slumped 16 percent since rising to a record $1,921.15 an ounce on Sept. 6 as Europe’s sovereign-debt crisis and falling global equities spurred demand for the metal. Bullion for immediate delivery fell 1.5 percent to $1,616.98 an ounce at 1:15 p.m. Hong Kong time.
“Gold’s rally this year has really been over the euro-zone crisis, and a lot of money has left the euro,” Cameron Peacock, a market analyst with IG Markets Ltd. in Melbourne, said by telephone. “During the last two days we’ve seen some strength in the dollar, which has weighed on gold.”
Zijin said yesterday it plans to borrow bullion from banks to sell in the market as the company is betting prices will rise. The company also sold bonds convertible into shares of Glencore International Plc, the world’s largest publicly traded commodities supplier, according to three people familiar with the matter yesterday.
--Editors: Ryan Woo, Andrew Hobbs.
To contact the reporter on this story: Elisabeth Behrmann in Sydney at firstname.lastname@example.org
To contact the editor responsible for this story: Rebecca Keenan at email@example.com.