A year and half after its birth in September 2014, Shanghai Gold Exchange (SGE) introduced the first Yuan-denominated gold benchmark price in the world, signaling a new wave of business innovation. The launching ceremony of Shanghai Gold Benchmark was held by SGE at Shanghai International Convention Center on April 19, 2016.
Pan Gongsheng, Deputy Governor of the People’s Bank of China, Zhao Wen, Vice Mayor of Shanghai Municipal Government and over 300 delegates from World Gold Council, The Silver Institute, World Platinum Investment Council, major domestic and foreign gold producers as well as consumers and gold investment institutions attended the ceremony and witnessed the launching of the Shanghai Gold Benchmark Price.
With continuous opening-up of the gold market in China, Asia Pacific has become an important gold production and consumption region in the world. Global investors’ demand of trading and risk management with Yuan-denominated gold product has increased steadily. Following the trend of domestic and international gold market development, SGE leverage its own advantage, researched and introduced the gold price discovery mechanism with product traded and cleared in RMB to the market.
Shanghai Gold Benchmark Price Trading refers to the product traded via SGE trading platform, the underlying is 1 kg gold ingots with a fineness of no lower than 999.9. The quotation unit is Yuan/gram. The trading runs with multiple auction rounds that participants submit the buying or selling volume based on the price.
When buying and selling volume reach a relative balance, the Shanghai Gold Benchmark Price is set. SGE is responsible for the system development and operation maintenance of Shanghai Gold Benchmark Price Trading platform. SGE is also in charge of the supervision and regulation of the trading process to avoid any price manipulation to ensure fairness of the price.
Mr Aram Shishmanian, CEO of World Gold Council Ms ZHAO Fanghua, General Manager of Trading Department of Shanghai Gold Exchange On the ceremony, SGE announced the list of 12 Fixing Members and 6 Reference Price Members, along with 18 international consultants. The first Shanghai Gold Benchmark Price set at 256.92 RMB/g.