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China to Allow Offshore Gold Trade?

  • China is contemplating a plan that would allow offshore yuan to be used in gold trading within the Shanghai Free-Trade Zone (FTZ).
  • Gold imports into China are strictly controlled by the country’s central bank. This plan stipulates that gold be allowed physical delivery to a warehouse within the FTZ.

china gold

  • According to Bloomberg News, the Shanghai Gold Exchange (SGE) is said to be proposing offshore yuan account trades in the three gold contracts it will offer, including bullion of 99.99% purity.
  • These gold contracts will expand the range of investment options for yuan deposits around the world, which as of March were estimated at approximately 1.5 trillion yuan (US$240 billion).
  • The SGE is seeking to establish an international gold trading platform to attract foreign institutional and private investors, and has been meeting with banks for feedback.
  • Australia & New Zealand Banking Group Ltd. (ANZ) has voiced enthusiasm and views this development as a “great opportunity” to attract foreign investment.

For more details on this, click here to jump over to Bloomberg.

  • Wiley

    Gold is money, the Chinese understand this.