Shanghai Gold Exchange and WGC Sign MoU to Develop Shanghai Free Trade Zone

(IDEX Online News) – The Shanghai Gold Exchange and the World Gold Council (WGC) have signed a Memorandum of Understanding (MoU) regarding a “Comprehensive Strategic Cooperation Agreement” to support the development of both domestic and international gold trading in China.

In September 2014, the Shanghai Gold Exchange initiated an International Board to begin the process of internationalizing the Chinese gold market.

The International Board allows international investors to use RMB to trade in precious metals and to use physical gold services such as storage, trusteeship, delivery, leasing and transit; changes that the board believes will enable greater interaction between China and the global gold markets.

“The launch of the International Board of the Shanghai Gold Exchange marks a significant transformation, not merely by further integrating with the global market, but also by laying a solid foundation to establish a new global market structure in the gold industry,” sad Xu Luode, chairman of the Shanghai Gold Exchange.

“The growth of the Shanghai Gold Exchange into the world’s largest physical gold exchange provides compelling evidence that the future of gold is physical. As the market shifts from west to east, the expansion of strong gold trading hubs in Asia will improve price discovery, liquidity, transparency and efficiency, all of which will transform the landscape of the global gold market,” said Aram Shishmanian, CEO of the WGC.

“As a major market, accounting for 30 percent of global capacity, this will enable China to take its rightful place in the world gold market,” he added.