China Launching “Global Gold Exchange” In Shanghai
GoldCore
GoldSeek.com
Tuesday, 27 May 2014
Shanghai Gold Exchange – China Foreign Exchange Trade System
The Shanghai Gold Exchange got the go ahead from the central bank last week to launch a global trading platform in the city’s pilot free trade zone. SGE is looking to launch physical contracts of gold, silver and platinum group metals denominated in Chinese yuan on the international exchange.
According to Reuters:
“For gold, they are looking to launch three yuan-denominated physical contracts, of 100 grams, 1 kg and the bigger London good delivery bar weighing 12.5 kg.
Beijing’s plans to open up gold trading comes at a time when the benchmark price-setting process for precious metals is under scrutiny. Barclays Plc became the first bank to be fined over manipulation of the 95-year-old benchmark London gold market daily “fix” last week.
State-backed SGE has asked bullion banks such as HSBC , Australia and New Zealand Banking Group (ANZ), Standard Bank, Standard Chartered and Bank of Nova Scotia to take part in the global trading platform, two people approached by the exchange said.
SGE, the world’s biggest physical gold exchange, where domestic banks, miners and retailers buy and sell gold, could also open up the international platform to foreign brokerages and gold producers, they said.
“China wants to have more voice in gold prices,” said Jiang Shu, an analyst with Industrial Bank, one of 12 banks allowed to import gold into China. “The international exchange is the first step towards gaining a say in gold pricing.”
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