Loading ...Hong Kong Gold Bourse Approved to Build Vault in China
Hong Kong’s Chinese Gold & Silver Exchange Society was given permission to set up a precious metals vault in Shenzhen, China, becoming the first non-mainland bourse granted onshore commodity warehousing access.
Local government authorities and the People’s Bank of China Shenzhen branch approved the exchange’s plan to build the 1,500-ton facility to store gold and silver in Qianhai, a special economic zone on the west of Shenzhen, according to Haywood Cheung, president of the CGSE. Construction will begin next year and take about 18 months, he said.
China, which overtook India as the biggest gold user last year, is starting gold trade in the Shanghai free-trade zone this month as the country seeks to exert its influence over prices while expanding the yuan’s role in global trade. Bullion rose 2.8 percent this year after slumping 28 percent in 2013.
“We have to enter into China,” Cheung said from Hong Kong in a Sept. 8 telephone interview. “My duty is to lead our members and in turn their clients, their international clients, into China.”
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