China plans Shanghai-HK gold link-up in ’15
While China is the world’s largest consumer of the precious metal, having surpassed India, daily trading of gold in financial centre Shanghai is small compared with London.
The move to develop gold trading comes as more trade flows to Asia and is in line with Beijing’s efforts to open up its domestic markets to foreign investors. China wants more market players to use its yuan currency when settling trade contracts and for making investments.
“We will cooperate with the Shanghai Gold Exchange and set up a link this year, making it a platform for market participants in Hong Kong to enter mainland China’s gold market,” Chan Sheung Chi, president of Hong Kong’s Chinese Gold & Silver Exchange Society said this week. Chan offered no details on how the gold connector would work, but said the launch time could be as early as in June.