“Always keep the strategic goal in mind, and gather strength from your companions to conquer the difficulties and reach the goal.” Shanghai Gold Exchange (SGE) is always confront with the market competition, seize up the situation and breakthrough for innovation. The launching of Shanghai Gold Benchmark Price represents the delivery of China’s voice power to the global gold benchmark price market. The launching of Peoples’ Gold represents the establishment of an inclusive gold system that is beneficial to all domestic citizenship.

The successful launching of the “Shanghai Gold” Benchmark Price trading

For the purpose of reflexing the actual supply and demand relationship in the China’s gold market, in order to take full advantage of the RMB price discovery function in the China’s gold market, and to increase the vitality of the domestic gold market, the Shanghai Gold Benchmark Price Trading was launched by SGE on April 19, 2016. The Shanghai Gold adopts margin mechanism, physical delivery is available at T+2. The RMB benchmark price is generated twice a day (morning session and afternoon session) through many rounds of auction. The whole procedure of price generation is transparent, and can be retraced and audited, while SGE fully guarantee the fairness of the benchmark price.

During the ceremony, Deputy Governor of the People’s Bank of China, Pan Gongsheng stated that the launch of Shanghai Gold Benchmark Price will provide a?fair and tradable?yuan-denominated?benchmark price to global investors.?It will also provide market participants?with?a new product and a well-designed tool?of?risk management,?which will improve?the price?discovery?mechanism, and further accelerate the internationalization of China’s gold market.

Vice Mayor of Shanghai, Zhao Wen, extended the congratulations on behalf of Shanghai Municipal Government: the Shanghai Gold Benchmark Price is a significant innovation by SGE?after the launch of the International Broad. It?is also?the?example of Shanghai’s proactive attitude towards the system and mechanism innovation.?

Jiao Jinpu, chairman of?Shanghai Gold Exchange pointed out that,?the launch of the “Shanghai Gold” provides the global investors a chance to share the develop opportunity of China’s gold market, and it also contributes to the balanced development of the global gold market. With the guidance of People’s Bank of China, SGE will continues work tight with members from different markets, in order to provide a better condition for the integrative development between each other, and strive to influence the healthy and accelerated development of the gold market together.

Mr Aram Shishmanian, CEO of World Gold Council pointed out that, the launch of the “Shanghai Gold” Benchmark price is a milestone symbol for SGE’s development and the internationalization of the China’s gold market. The benchmark price can be seen as the foundation for both London, New York, and Shanghai to establish the global gold trading market in the future.

Ended by June 30, 2017, the total trading volume of “Shanghai Gold” has reached 1047.16 tons, with total turnover of RMB 287.5billion. There are 28 members participate in the daily benchmark price trading, member structure including both domestic and foreign commercial banks, securities companies, gold producers and refineries. Among them, financial institutions account for the most trading. The benchmark price, on the other side, has been gradually accepted by most domestic companies in the gold industry and commercial banks, that we are pleased to discover that the benchmark price has been applied to more and more filed including hedge settlement, leasing settlement, and new product design of the gold market. Also, the use of the benchmark price has been steadily increased in foreign markets, which will further influence the impact of RMB-denominated gold price in the global market.

SGE and DGCX signed “Shanghai Gold Benchmark Price Licensing Agreement” on October 28, 2016 in Shanghai.

During the conference of “Belt and Road Forum for International Cooperation” held in China，SGE and Budapest Stock Exchange (BSE) signed “Memorandum of Understand” (MOU) on May 13, 2017 in Beijing.

In future, the “Shanghai Gold” Benchmark Price will take the advantage combined with Asian time zone, the RMB pricing characteristic, and the business condition of Shanghai Free Trade Zone Area, to constantly expand the apply range and market participation of the benchmark price. SGE will further build the authoritative and fair image of the benchmark price, in order to fully promote the status and impact of China’s gold market to the global gold market. SGE will also strive to contribute to the stable and heathy development of the opening strategy to China’s gold market.

Inclusive gold financing, share the development

The Prime Minister of China, Mr. Li Ke Qiang pointed out that in 2014, “we should try to convert the ‘Shanghai Gold’ to ‘Peoples’ Gold’ and let our citizens enjoy the benefits from the reform and development project”. This year was the one year anniversary of the establish of Shanghai Free Trade Zone Are and the launch year of SGE’s international board. For the purpose of better influence the idea of inclusive gold financing, SGE worked actively for innovation and optimization. With the leadership of People’s Bank of China, SGE launched the first professional mobile trading terminal in China with the assistance of all its members. The launch ceremony was held on January 26, 2016, the trading terminal was names “YiJinTong”. SGE wishes to build a gold information platform through this APP product and benefit to all country citizens.

The YIJINTONG trading terminal is a combination of account open apply, market price browse, trade order submission, information query, and market news receive. This personal trading terminal provides users an authorization, professional, and convenient trading software that support both iOS and Android system. The YIJINTONG system provides 24/7 service whenever and wherever, users can apply for account open directly from the mobile phone. This function largely optimized the complicated procedure for account opening and break the limitation of offline account opening. Furthermore, users are able to process fund transfer and open/close position directly on the mobile. The query for position and inventory, query for historical transaction are also available through the YIJINTONG. Thus, the user experience has been largely increased due to the breakthrough of the data visit limitation from the internetbank and the PC trading terminal. Consider the trading security, YIJINTONG assures the real and effective operating from each user by various security check methods like image recognition, bank card verification, and two-factor authentication. Last but not least, YIJINTONG provides various type information in different kinds to assist the users to seize the opportunity of their investment.

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SGE will continuously follow the develop principal of open, inclusive, and win-win, to enrich the product function of YIJINTONG gradually, so as to enlarge the scope of YIJINTONG user, and let more gold investors enjoy a more convenient and fast process to be participated in the China’s gold market.