In a first-of-its-kind move, the Shanghai Gold Exchange (SGE) announced the expansion of its operations beyond mainland China by launching two new gold trading contracts, along with the establishment of a new storage facility in Hong Kong. This strategic step aims to strengthen the international role of the Chinese exchange and solidify China's influence in commodity and currency markets, while also supporting Hong Kong’s global status as a key financial hub in Asia.
According to an official statement released by the exchange on Wednesday, the new contracts will be denominated in Chinese yuan and will allow for both cash settlement and physical delivery — including the option of delivery to the new storage facility operated by a unit of the Bank of China Limited in Hong Kong.
Trading of the two contracts is set to begin on Thursday, each covering a different gold purity grade. The exchange also announced that investors will be exempt from storage fees at the new facility until the end of the current year, in an effort to attract interest from international market participants
