Beijing: China has set up a $16-billion gold investment fund aimed at developing trade and transportation infrastructure between China and the rest of Asia, a recent report said. The fund is part of the country’s “Silk Road” initiative, China Central Television reported.

Shandong Gold Group and Shaanxi Gold Group – two of China’s top gold producers – will take up majority stakes of the fund while the rest will be owned by financial institutions.

The fund could be used to launch gold-backed exchange-traded funds and buy stakes in listed gold companies and mining firms, the report said.