Gold: Quote In Renminbi Instead Of System

It is reported that Shanghai Free Trade Zone An integral part of the platform construction, the Shanghai gold (1323.80, 4.80, 0.36%) exchange (upper Gold Institute) plans to set up an international trading platform in the free trade zone has been finalized.

In an interview with Dongfang Zaobao, the relevant personages of Shanghai gold bank pointed out that overseas investors would be able to participate in all the varieties of the Shanghai Stock Exchange, and the international trading platform would serve as a member of the upper gold company to carry out the functions of risk management and transaction management. At present, the construction of international trading platform has been implemented step by step according to the plan, including the confirmation of the plan and reporting to the central bank for approval. Although the legal procedures of all parties, especially the overseas member units, are still not controllable, the relevant businesses are expected to be formally launched in the second half of this year.

The person also said, "the international trading platform planned by Shang Jin (commonly known as the" gold international board ") has not yet completed the registration work in the Shanghai free trade area. However, the registration name is basically "Shanghai international". gold The trading center, which is a Limited by Share Ltd, will not introduce other shareholders.

　　 "No longer alone." trading system "

Prior to that, Shang Jin had sent a draft of the international trading platform scheme to the member units, and in the latest design plan, the Shanghai gold company first modified the trading positioning of the international board and main board, that is, the international trading platform will become a member of the upper Gold Institute.

"Before we had thought about separating the trading platform from the main board, but later in the process of soliciting opinions, we found that the companies in the FTA did not have the function of developing members, so we finally decided to directly develop overseas investors to the upper Jin Institute and directly participate in the transactions of the upper gold company." As mentioned above, overseas investors will be trading with existing members in existing systems instead of another single trading system. Market liquidity will be ensured, and the variety of transactions will extend to all the varieties of the upper gold market compared with the previous three.

The current gold trading products include gold, silver (19.77, -0.17, -0.85%) and platinum spot trading varieties Au99.95, Au99.99, Au100g, Ag99.99, Pt9995, as well as postponed trading varieties Au (T+D), m Au (T+D), and (()).

　　 RMB quoted price

It is understood that the above transaction varieties are quoted in Renminbi, so this point will be retained. In terms of margin, offshore members will use offshore renminbi.

Insiders also said that this also means that the international trading platform of Shanghai gold will pave the way for the internationalization of RMB and become an important investment type for prospering offshore RMB market. If the gold price center of the renminbi can be formed in the future, the internationalization of RMB will take a big step.

Cross border deliveries "temporarily difficult to achieve"

According to the relevant system design, in the international trading platform of Shanghai Gold Institute, overseas institutions and individual investors must set up NRA Non-Resident Account as the basic account for foreign exchange settlement and transfer of surplus loans. The use of Renminbi in accounts is restricted to transactions on upper gold, and funds are strictly transferred in accordance with the principle of "where to go" and not outflow from the exchange system.

However, after market expectations, "in the Shanghai Free Trade Zone, deliveries cross regional deliveries", this point will not be realized in the initial stage of business.