The Shanghai Gold Exchange and the World Gold Council (WGC) have signed a memorandum of understanding, according to a press release received by Rough & Polished. "Integrated strategic cooperation agreement" is aimed at supporting both domestic and international gold trade in China.
In September 2014, the Shanghai Gold Exchange opened a new international platform in order to start the process of the Chinese gold market entering the international arena.
This international platform allows international investors to use yuan to trade in precious metals, as well as to use physical handling of gold, such as storage, mediation, delivery, lease and transportation. Representatives of the trading platform are confident that the planned changes will help improve the interaction of gold markets in China and around the world.
"The launch of the international platform of the Shanghai Gold Exchange speaks about important changes that are achieved not only by integration with international markets but also by creating a solid foundation for the formation of a new market structure for the global gold industry," said Xu Luode, chairman of the Shanghai Gold Exchange.
"The fact that the Shanghai Gold Exchange has become the largest in the world in terms of physical turnover of gold is proof that the growth of this sector in the future will be ensured by the trade in physical gold." As a result of the shift in the precious metal trade from west to east and strengthening of the positions of trading floors in Asia's value, liquidity, transparency and industry efficiency will change the entire world gold market, "says Aram Shishmanian, president of WGC." This will allow China, which holds 30% of the world gold market, s its rightful place on the world gold market. "