China to Further Open Gold Market to Trading, Imports
China will allow more commercial banks to export and import gold and permit increased participation by foreign companies in the market, the People’s Bank of China said.
China will improve foreign-exchange policies related to the gold markets, the central bank said in a statement today on its website. The statement didn’t give a timeframe. The government is also studying allowing foreign suppliers to deliver bullion directly to the Shanghai Gold Exchange, it said.
« The Chinese central bank is liberalizing the gold market step by step and this is the latest move, » said Ellison Chu, managing director at the precious-metals desk at Standard Bank Asia Ltd. in Hong Kong. « It will allow more foreign participation in China’s growing gold market and it will also help China to be more integrated into the global gold-trading system. »
The central bank also said it would encourage and guide commercial banks to provide yuan-denominated gold derivative trading.