Cleitus: This article is HUGE! Backdoc alluded to this a few weeks ago that on the 19th a launch date will be set by China for gold trading by Asian Banks. Gold Spot prices set and ready. Take off 4/19/16! Everything IS coming together globally folks. Great article
Walkingstick!
Walkingstick: China launches yuan-denominated gold benchmark in Shanghai
Xinhua, April 19, 2016
China launched its yuan-denominated gold benchmark on Tuesday in Shanghai as it seeks to secure more sway in the pricing of the precious metal.
The Shanghai Gold Benchmark Price (code: SHAU), is the quote for trading of 1kg, 99.99 percent purity bullion, denominated in the Chinese yuan and derived from multiple rounds of trading.
The benchmark was set at 257.97 yuan per gram on Tuesday, the Shanghai Gold Exchange (SGE) said in a statement.
The benchmark also lays the foundation for shifting bullion trading in Shanghai from mostly spot to derivatives to increase the appeal of yuan-denominated bullion trading as financial instruments for both domestic and global investors.
SGE Chairman Jiao Jinpu said the launch of the benchmark offers the opportunity to develop bullion trading in China’s financial markets and encourage more participation by global investors.
Standard Chartered Bank (China) Ltd. and ANZ Bank (China) Ltd. are among 12 fixing members for the benchmark trading. The other ten members are domestic banks.
The trading margin is set at 6 percent and transaction fees are exempted until June 30 this year.
http://www.china.org.cn/business/2016-04/19/content_38280688.htm
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Walkingstick: China launches yuan gold fix in bid to be price maker
4 Hours Ago
China on Tuesday launched a yuan-denominated gold price fix in its bid to become a price maker in a market dominated by London and New York.
Listed on the Shanghai Gold Exchange, the benchmark price is derived from a 1 kg-contract and was set at 256.92 yuan ($39.70) a gram on Tuesday, Reuters reported. The price will be set twice a day.
China is the world’s largest gold producer and jostles with India for the tag of the biggest consumer of the precious metal globally.
Eighteen institutions including top Chinese banks such as Bank of China and ICBC, as well as Standard Chartered and ANZ will join the benchmark fixing.
The yuan gold fix will come up against the London Bullion Market Association’s spot benchmark set twice a day with 12 participants.
Swiss trading house MKS’ chairman Marwan Shakarchi said China’s growing consumption of gold supports the set-up of the fix.
“To have a benchmark price in renminbi … will help both consumers and producers in this part of the world,” said Shakarchi. MKS is one of the 18 trading members of the yuan gold benchmark.
Although the impact of China’s gold fix will likely be limited now in a closed monetary system, there is potential for opportunities in the future when the currency achieves full convertibility, Shakarchi indicated.
“Ultimately…I see them uniting the (offshore yuan) CNH and CNY (onshore yuan). (The currency) will be fully convertible and it will be easier to import gold into China,” added Shakarchi.
http://www.cnbc.com/2016/04/19…..maker.html
