OREANDA-NEWS. October 06, 2014. Governor Zhou Xiaochuan attended the launch ceremony of the International Board of the Shanghai Gold Exchange.

At the launch ceremony, Governor Zhou Xiaochuan conveyed the congratulation of Premier Li Keqiang, who made a field trip in the China (Shanghai) Free Trade Zone earlier on that day. Governor Zhou said, “When visiting the Free Trade Area this afternoon, Premier Li Keqiang encouraged the launch of the international board of the Shanghai Gold Exchange, and asked Mayor Yang Xiong and me to attend the ceremony and express congratulation on the launch”. Premier Li required that the International Board of Shanghai Gold Exchange should be developed into a market with international influence. The Premier also described the Shanghai Gold as everybody’s gold market, a vivid expression of the public interest in the Shanghai Gold Exchange.

In his speech, Governor Zhou Xiaochuan said that as gold market was an integral part of the financial markets in China, the launch of the International Board of Shanghai Gold Exchange was a major event in the opening up of Chinese financial markets. For the time being and looking ahead, the Shanghai Gold Exchange is in a time of strategic opportunities to seek further development. The launch of International Board is an important step taken by the Shanghai Gold Exchange in its endeavour to take advantage of the opportunities, make innovation and promote opening-up of the gold market for the purpose of building Shanghai Gold’s brand reputation and developing a gold re-exporting center in Asia. It is also a concrete step to implement the major decisions of the CPC Central Committee to comprehensively deepen the economic reforms. The launch of the International Board will help further broaden and deepen the gold market in China, facilitate the RMB-denominated price discovery function in the gold market, improve the financial market system and the efficiency of financial market in China. Furthermore, it will help Shanghai gain advantage in its efforts to build an international financial center, and promote the joint development of Shanghai Free Trade Zone and Shanghai International Financial Center
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Governor Zhou pointed out that the PBC has in recent years continuously improved the laws and regulations governing the gold market, promoted the sound and regulated development of the gold market, and guided the gold market to turn from a market for the trading of goods to one for financial products, from offering spot trading only to supporting both spot and derivative trading, and transform from a domestic market to an international one. There is already good progress. Going forward, the PBC will continue to support the sustained and healthy development of the gold market in China.

Governor Zhou emphasized that after the International Board’s launch, the Shanghai Gold Exchange should draw upon advanced international experience and expertise, pool the advantages offered by the China (Shanghai) Free Trade Zone, the Asia time zone and RMB pricing of gold trading, and provide high-quality and efficient services to investors in trading, settlement, custody, trans-shipment, and delivery in accordance with the standards and requirements of a world-class gold exchange. The Shanghai Gold Exchange should develop new products to meet market demand, further broaden and deepen the gold market and enhance the international influence of China’s gold market. It is also imperative to enhance risk management, maintain the safety and security of the trading platform, and hold on to the bottom-line of allowing no systemic risks to emerge.

During the launch ceremony, the first transactions of the International Board were concluded by the MKS(Switzerland), Hong Kong and Shanghai Banking Corporation, Bank of China, Industrial and Commercial Bank of China.

Mayor and Deputy CPC Secretary Yang Xiong of the Shanghai Municipal Government attended and spoke at the launch ceremony. Deputy Governor Liu Shiyu and Shanghai’s Vice Mayor and Deputy CPC Secretary Ai Baoyun unveiled the plaque of the Shanghai International Gold Exchange. Chairman Xu Luode of the Shanghai Gold Exchange presided over the ceremony. Officials of the PBC and Shanghai Municipal Government, representatives of the domestic and international members of the Exchange witnessed the launch of the International Board.