BEIJING(BullionStreet): Opening further it's huge domestic gold market to global community, China announced provisional rules and regulations for the operation of gold ETF's.

China Securities Regulatory Commission, or CSRC however didn't set any specific timetable for the listing of gold ETFs.

Analysts said authorities need to thoroughly study how to regulate gold ETFs traded on stock exchanges that track the price of gold and have most of their assets invested in gold.

They added that these moves are part of government efforts to boost the development of both the gold market and the capital market and aimed to protect investors' interests in such new products.

China will open up to the global gold market, increasing its impact and attracting more foreign banks to get involved in China's domestic market,they said.

Gold ETFs are operated in most of the world's major financial markets, with a combined asset scale of more than $140 billion as of the end of July 2012, according to a CSRC statement.

China's rapidly growing gold market has created conditions for the development of gold ETFs, said the statement.

China is the world's biggest gold producer and consumer, with its gold output reaching 360.96 metric tons in 2011, according to the China Gold Association.

The value of gold product transactions surged 53.45 percent year-on-year to 2.48 trillion yuan ($395 billion) at the Shanghai Gold Exchange, the country's major gold bourse, in 2011, the association said.