In what is being widely seen as a major step toward globalizing China's gold market, HSBC yesterday became the first overseas bank to start trading gold on Shanghai Gold Exchange (SGE) after gaining approval from China's banking regulator.
Tong Gang, the press officer of Shanghai Gold Exchange, told China Daily: "The transaction volume traded by HSBC today (Thursday) on SGE amounted to 17 kilogram of gold in purity Au9995."
"It is an exciting policy to allow overseas banks access to China's gold market," said Tong. "A closer tie between China's gold market and the global market is expected to be established."
Along with HSBC, Standard Chartered Bank and Canada's Scotiabank were also given SGE memberships earlier this year.
Industry experts said the opening of Shanghai's gold market to overseas banks is widely considered a major effort to help increase the liquidity of the domestic gold market and bring in the foreign expertise that can promote the development of the market in the longer term.
Richard Yorke, group general manager, president and CEO of HSBC China, said: "The opening of the gold market to overseas banks is another exciting development for China's financial market."
"HSBC China is pleased to remain at the forefront of the new market developments. Our trading at the exchange will enable us to share our international experience and expand our participation in China's financial markets as well as our service scope," Yorke added.
(China Daily June 6, 2008)