On September 18, 2014, Shanghai International Gold Exchange Center was officially unveiled, and the Gold International Board was put into operation formally. Industrial Bank (IB) Hong Kong Branch made its presence in the first list of international members, with dual qualifications for both self-run and agency products. As a member of the main board market of Shanghai Gold Exchange, IB Capital Operation Center also obtained the qualifications for both self-run and agency products on the international board, and joined the self-run and agency transactions of three species, IAU99.5, IAU99.99 and IAU100g at about 08:00 p.m. on that day, taking the lead to have 33 self-run and agency transactions successfully.
It is reported that, the first transaction prices of the three species are respectively 259.6 RMB/g for IAU99.5, 259.8 RMB/g for IAU99.99, and 259.9 RMB/g for IAU100g, and the corresponding species delivered are: gold ingot of the standard weight of 12.5 kg and with purity not less than 99.5%, gold ingot of the standard weight of 1 kg and with purity not less than 99.99%, and gold bar of the standard weight 0.1 kg and with purity not less than 99.99%.
While all policies of Shanghai Free Trade Zone are being implemented, various major markets at home are seeking to establish international board exchange sites in the zone, and Shanghai Gold Exchange (SGE) is a first mover among them. SGE established Shanghai International Gold Exchange Center Co., Ltd., a wholly-owned subsidiary, in the zone in this May. By attracting overseas capital to make investment in the Chinese gold market via the international board, the company aims at pushing the further opening of domestic gold market to the outside, improving the pricing power of China to the gold market, and deepening the international influence of RMB.
Since the second quarter of this year, as the person-in-charge of the Capital Operation Center of IB indicated, the bank has initiated the all-round preparation for the launch, winning the recognition of SGE.
IB became a member of SGE as early as 2005, getting involved in various businesses of the exchange actively. It has been honored an “excellent member" by the exchange, and won the “Single Prize for Trading Gold” and the “Single Prize for Trading Silver” for three consecutive years, becoming a main participant in SGE. It is also one of the first group of commercial banks acquiring the license for all gold businesses. IB Hong Kong Branch is a Level I branch of the bank and also the first overseas branch established by the bank.
“Acquiring the qualification as an international member of SGE is a milestone for our precious metal trading and agency businesses to go global from home.” The person-in-charge of the Capital Operation Center of IB pointed out that this was not only conducive to broadening the channels for the bank’s gold trading businesses to further hedge risks, but also helpful for the bank to bridge both domestic and overseas markets depending on the advantages of Hong Kong as the largest gold transit port in Asia, so as to provide gold spot products for domestic market more conveniently. Meanwhile, it will also push the bank to gradually broaden the international agency businesses, develop customers in the international market, and increase the channels to use offshore RMB, thus improving the trading capacity of the bank in the offshore RMB market and further improving the reputation of IB in overseas markets.