China Invites Top Foreign Banks to Global Gold Exchange

BEIJING (Scrap Monster):  China has added more glimmer to its dignified gold aspirations by inviting foreign banks and gold producers to take part in a global gold exchange in Shanghai that could challenge the dominance of New York and London in precious metal trade and pricing.

“China wants to have more voice in gold prices,” said Mr. Jiang Shu, an analyst with Industrial Bank, one of 12 banks allowed to import gold into China. “The international exchange is the first step towards gaining a say in gold pricing.”

According to the media report, the Shanghai Gold Exchange (SGE) has approached Australia and New Zealand Banking Group, HSBC, Standard Bank, Standard Chartered and Bank of Nova Scotia to be part of the global trading platform.

“If you don’t allow foreign players to participate in your market actively, or do not push Chinese financial institutions to participate in the international market, then China’s strong gold demand is only a number, not a power,” Shu added.

Last year China overcame India as the world’s top importer of gold. The gold jewelry and investment demand had touched record high of 1,065.8 tons in 2013.