Shanghai Gold Exchange

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Shanghai Gold Exchange
Sge.jpg
Founded 2002
Headquarters Shanghai
Key People Wang Zhe, chairman
Products Gold, silver, platinum spot and forward
Website http://www.sge.sh

Shanghai Gold Exchange (SGE) is a non-profit self-regulatory organization, approved by the State Council, organized by the People's Bank of China, and registered with the State Administration for Industry & Commerce, for the purpose of trading gold, silver, platinum and other precious metals.[1]

Background

In May 2010, the exchange announced it was planning to offer gold exchange-traded funds (ETFs), driven in part by strong Chinese demand for gold. Gold demand in the first quarter of 2011 more than doubled, surpassing India as the largest market for gold coins and bars, according to the World Gold Council. [2]

In March of 2008 the China Banking Regulatory Commission (CBRC) issued permits allowing Chinese commercial banks to trade gold futures on the Shanghai Futures Exchange (SHFE). Commercial banks are required to be members of the SGE and the SHFE before conducting gold futures trading through the SHFE. Moreover, banks must have a capital adequacy ratio of over eight percent, the CBRC announced.[3]

The People's Bank of China gave approval to the Shanghai Gold Exchange in mid-2007 to accept foreign banks as members. Foreign banks applying to be accepted as members of China's Shanghai Gold Exchange should be locally incorporated.[4]

Products and Services

The Shanghai Gold Exchange launched a gold trading platform with eleven yuan-denominated gold contracts on September 18, 2014.[5] The international board, as the platform is known, is in the city's free-trade zone, making it open to foreign investors.[6] [7] The contracts on the new exchange will be physically settled and will be traded between bullion banks, refiners, producers and trading houses.

Key People

  • Wang Zhe, Chairman

References

  1. Welcome to SGE. SGE.
  2. Shanghai Gold Exchange Planning to Start ETFs, Chairman Wang Zhe Says. Bloomberg.
  3. Chinese Regulator Authorizes Commercial Banks to Trade Gold Futures. Resource Investor.
  4. Shanghai Gold Exchange Wants Foreign Members Incorporated in China. MarketWatch.
  5. China opens gold market to foreigners, seeks more pricing power. People Daily.
  6. China set to win Asia gold. Reuters.
  7. Gold trading to open up to foreigners in Shanghai. South China Morning Post.