China launches interbank gold trading system
By GCRU Gold News on Monday, January 18 2016, 07:08 - Permalink
China has launched interbank gold trading at the beginning of this year, in an effort to open up the country's bullion market. The trading mechanism is introduced by Shanghai Gold Exchange and the China Foreign Exchange Trading System.
It is aimed to boost liquidity of interbank gold trading, and promote market making. Ten banks including China's big four banks a local branch of Australia and New Zealand Banking Group ANZ will act as first-tier market makers. Another six smaller Chinese banks are listed as second-tier market-makers.
Before the new mechanism, banks were not allowed to trade gold with each other and could only buy the precious metal through the Shanghai Gold Exchange, which is the world's biggest physical trading platform for the metal.