Shanghai launches its gold exchange

The Shanghai Gold Exchange started trading contracts in the China (Shanghai) Pilot Free Trade Zone on Thursday, enabling foreign investors to participate in China's rapidly growing bullion trading market.

Market insiders and experts said Shanghai Gold may elevate China's position in the international gold market by helping the world's largest bullion buyer and gold consumer to establish a benchmark price in Asia.

Currently, pricing power of the precious metal lies largely with the London Bullion Market Association.

SGE's Chairman of the Board Xu Luode said earlier this year that China as the world's biggest consumer and producer of gold should have more pricing power to match the role it plays in the global gold market.

"We should have gold price fixing done in China itself. We need to build China's influence in the global gold market," said Xu.

Shanghai launches its gold exchange