The Shanghai Gold Exchange, China's biggest precious-metals market, today began offering individual investors gold in lots of 100 grams, a tenth of the size of the existing product, in a bid to raise trading volume.

Individual investors can buy or sell the new product, known as Au100g, through the 16 so-called financial members of the exchange, or other members approved by the People's Bank of China, the exchange said in statement on Dec. 21. Institutional investors were already able to trade gold in sizes ranging from 50 grams to 1 kilogram (35.3 ounces).

Spot gold has risen 20 percent this year, touching a 26- year high of $730.40 an ounce in May. To meet the growing demand from both institutional and individual investors, the Shanghai Gold Exchange introduced silver trading on Oct. 30, and widened the trading band for gold and platinum contracts on Nov. 23.

"Individual investors are now able to enter contracts with a much lower initial investment," Xu Zhipeng, a trader at Shanghai Gold Coin Investment Co., said today. Buyers "are probably entitled to lower charges and more timely prices."

The Shanghai Gold Exchange was established in 2002 as China liberalized its precious-metals market. The exchange offers cash and cash-deferred contracts for gold, platinum and silver. Overseas miners, jewelers and investors are banned from trading on the exchange.