Hong Kong, Shanghai consider gold-silver alliance
By GCRU Gold News on Wednesday, April 30 2014, 21:09 - Permalink
The Hong Kong and Shanghai exchanges are also considering a gold and silver trading alliance that would mark another potential collaboration between the two financial centers. --- Plans of an alliance is taking place at a time when the Mainland surpassed India as the world’s largest gold consumer last year. But the proposed alliance comes days after news came out of the Mainland opening Beijing to gold imports -- cutting into Hong Kong’s role as a transit point.
For some economists, the reported move is all tied in closely with Beijing’s push to internationalise the Chinese currency.
"They want to hedge against a fall in their currency reserve. They’re very nervous about the U.S. dollar and inflation picking up generally globally." Martin Hennecke said, "It seems they’re just about to make more and more steps to liberalise the renminbi and they think that if they increase the gold backing of the renminbi that may prompt more and more other nations to place increasing trust in its currency."