(Minews) - The Shanghai Gold Exchange (SGE) is in talks to list its bullion products on CME Group's trading platform and launch yuan-denominated bullion contracts in Dubai, an exchange official said.
China, the top producer and a leading consumer of gold, is seeking to boost its global presence in the bullion market and increase the use of its currency, while also opening up its own markets to foreign players.
State-run SGE, the world's biggest physical bullion exchange, will initially list its products and prices on CME, whose members and clients will be allowed to trade the Chinese exchange's products, SGE Vice-President Shen Gang told an industry conference on Thursday.
In the next phase, SGE members will be able to trade CME products via SGE, Shen said, according to presentation slides, adding the bourse was also in talks to list yuan-denominated gold contracts on the Dubai Gold and Commodities Exchange.
"SGE will continue to actively explore any cross-market cooperation opportunities," Shen said.
A previously announced plan for a Hong Kong "gold connect" through partnership with the Chinese Gold & Silver Exchange Society would begin next month, she said.
China has accelerated reforms in the bullion market in recent years, granting more import licenses and allowing foreigners to trade bullion in offshore yuan. It announced plans on Thursday to launch a yuan-denominated gold fix to boost its influence over the pricing of the precious metal.
