The Shanghai Free Trade Zone has secured regulatory approval to launch an international board under the Shanghai Gold Exchange, the Hong Kong Economic Journal reported Tuesday, citing Xinhua News Agency.
The new platform, which aims to attract overseas capital to invest in China’s gold market, is expected to start operation in the second half of this year, Xinhua said, citing an approval document released by the People’s Bank of China earlier this month.
Both onshore and offshore renminbi will be allowed to settle transactions in the exchange to contribute to the liberalization of the Chinese currency, Shanghai Gold Exchange chairman Xu Luode was quoted as saying.
The exchange is the sole spot trading platform for the precious metal in the mainland. Demand is forecast to grow to 1,176 metric tons this year, but production volume will remain at 428.16 tons, the report said, citing data from the China Gold Association.
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