|Golden Opportunity for Shanghai Gold Exchange|
|by Tom McGregor||Thu, Nov 15, 2012, 02:43 AM|
BEIJING: Chinese gold consumers have become key players for global demand of the precious metal. Buying gold has risen dramatically in China and India. Nevertheless, major trading floors for gold contracts are located in New York and London, but not in Shanghai. China's financial capital city hopes to upgrade its gold exchange for higher trading volumes and welcome more foreign investors.
"Financial authorities in China are considering measures which would make it easier for foreign investors to participate in the country's largely isolated derivatives market," according to the People's Daily.
It added, "a move which would hasten the integration of the local precious metal market with the global market, Xie Duo, general director of the financial market department at the People's Bank of China, said Monday at the annual London Bullion Market association conference. Xie did not offer a timeline of further details."
The announcement could hint at bigger news in the near future. Shanghai dreams of transforming into a world-class city of finance. However, its stock exchange and commodities markets have been considered 'isolationist', since officials have imposed stringent regulations and quotas on foreign investors.
However, speculation is swirling that Beijing would permit greater leeway for foreigners to get more involved with trading in the derivatives market in the city. A new dawn could be arising for Shanghai and gold markets worldwide.
To read the entire article from the China Daily, link here:
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