China seeks to be a much bigger player in the gold market, and to have a much bigger say on gold pricing
According to “people familiar with the matter”:
- China has approached foreign banks and gold producers to participate in a global gold exchange in Shanghai
- SGE has asked bullion banks such as HSBC, Australia and New Zealand Banking Group, Standard Bank, Standard Chartered and Bank of Nova Scotia to take part in the global trading platform, “two people approached by the exchange” said
The Shanghai Gold Exchange (SGE) got approval from the People’s Bank of China (PBOC) last week to launch a global trading platform in Shanghai’s pilot free trade zone.
Jiang Shu, an analyst with Industrial Bank, one of 12 banks allowed to import gold into China, said:
- “China wants to have more voice in gold prices. The international exchange is the first step towards gaining a say in gold pricing.”