Number of Chinese gold importing institutions increase to 15
Bullion.Directory precious metals news 19 August, 2014
By Christopher Lemieux
Senior FX and Commodities Analyst at FX Analytics
China has allowed more foreign institutions to import gold into the country, including Standard Chartered and China Merchants Bank.The Chinese government is beginning a campaign to gain substantial pricing power of gold, after purchasing over 1,000 metric tons in 2013.
Standard Chartered is only the third foreign bank allowed to import gold into China.
The addition of these firms have boosted the amount of banks that can import the precious metal to 15, as China begins a new international bullion exchange in Shanghai with hopes to become a price-discovery center.
Asian markets are looking for alternatives to the current London Gold Fixing, which has come under pressure for price manipulation, a lack of transparency and out-of-data procedures.
“We are active traders on the SGE and have been waiting for the gold import license for more than a year now,” said China Merchants Bank.
The Shanghai Gold Exchange (SGE) is the current platform for all physical gold trading in China.
China, the world’s largest gold producer, is well on their way to becoming a major market player. The new platform will allow more market accessibility to foreign institutions.
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