The Shanghai Gold Exchange has launched its international board on Thursday Sept. 18, eleven days ahead of its original launch date of Monday Sept. 29, in the financial hub’s new free-trade zone, a widely anticipated move to open China’s tightly controlled gold market to foreign capital.
The yuan-denominated board offers 11 contracts including physical gold contracts of 100 grams and one kilogram.
The location of the SGE international board in the Shanghai free trade zone (FTZ) is symbolic in that this location has been earmarked by the Chinese government as part of financial sector internationalisation strategy.
The free-trade zone is an 11-square-mile area touted as a test bed for the remaking of the country’s financial sector viagra generique france. Locating the board in the free-trade zone distinguishes it as being aimed at offshore players.
The SGE is also opening a precious metals vaulting facility in the free trade zone with a 1,000 tonne capacity limit. It is hoping that regional countries, including those in Southeast Asia, will use the warehouse as a storage facility for gold trade flows.
In a related development yesterday, the Hong Kong based precious metals trade organisation, the Chinese Gold and Silver Society (CGSE) announced that they have been given permission by the Chinese government to construct a precious metals storage vaulting facility in a special economic zone in Shenzhen in China.
The CGSE is the the first non-mainland entity to be given such permission. The CGSE’s vaulting facility will have a 1,500 tonne capacity and will be completed by late 2016 or early 2017.