Chinese Banks Will Officially Participate In The Gold Fixed Price, And The Yuan Will Be Fixed At The End Of The Year.

Two measures should be taken simultaneously to seek more action on global gold pricing.

Global gold (1181.50, 8.30, 0.71%) fixed price market is undergoing revolutionary changes, and reporters have observed that this time, China, the world's largest gold producer and second largest consumer country, intends to seek more in it.

One side

Actively participate in the London gold fixed price, on the other hand, the RMB gold fixed price is exposed to plan to launch at the end of this year.

Chinese banks eager to LBMA gold fixed price

Asia is the world's largest gold consumer market, but until recently, the London gold pricing system was the first to have a member of the Asian bank.

In June 22nd, Bank of China officially became the first Chinese bank to participate in the fixed price of LBMA gold.

Meanwhile, according to the reporter's understanding, ICE also expects that China Construction Bank will join in the pricing of LBMA gold price.

In the past one hundred years,

After the first Chinese bank has joined the monopoly of European and American banks, the internationalization of China's gold market is bound to accelerate.

The direct participation of Chinese banks in the fixed price of gold will also strengthen the continuity of the domestic and overseas markets, so that international gold prices can better reflect China's supply and demand.

At present, the total number of gold price participation agencies in London is 10, including J.P. Morgan, Feng Ye bank, HSBC, faxing, UBS, Barclays, Goldman Sachs, Standard Chartered, Bank of China and Morgan Stanley.

In March this year, the pricing authority of Intercontinental Exchange (IBA) officially launched the London gold auction electronic platform, replacing the London gold pricing mechanism which has been running since 1919.

Zhou Ming, general manager of the industrial and commercial bank's precious metals business department, said at a meeting in Shanghai in June 24th that ICBC was considering whether it was directly involved in the pricing of London gold or indirectly through its London subsidiary standard bank.

ICBC completed the 60% stake in South Africa's standard bank earlier this year, including the precious metals business of the bank.

"We are still integrating business operations.

We still need the approval of the board of directors (to join London gold pricing).

Zhou Ming said.

LBMA chairman Grant Angwin also said that more Chinese banks are expected to participate in the new London gold pricing.

According to the London Bullion Market Association (LBMA) data, London is the largest gold OTC market in the world, with an average of 20 billion 200 million US dollars per day in April.

At present, China is the world's largest gold producer and the world's second largest gold consumer after India, and China is stepping up its influence on gold pricing.

The London gold fixed price has been beset by manipulation scandals recently, which has given China the opportunity to fight for pricing power.

"We will launch a fixed price of RMB gold at the appropriate time, and we hope it will be launched by the end of this year."

Shen Gang, deputy general manager of Shanghai gold exchange, said at an industry conference in Shanghai on June 25th.

According to foreign media reports, the Shanghai gold exchange has submitted to the people's Bank of China several weeks ago details of the fixing procedures, rules and supervision of the participants. People familiar with the matter said that the Central Bank of China may soon approve the launch of a fixed price of RMB gold.

Pan Gongsheng, deputy governor of the people's Bank of China, said the central bank will continue to support the "rapid and healthy growth of China's gold market" and its internationalization.

If the yuan price is fixed, then China may ask mainland buyers and foreign suppliers to trade in Renminbi gold prices, weakening the influence of London fixed price in China's largest gold market.

However, in view of the fact that the RMB is not fully convertible, the two gold fixed prices may coexist around the world.