China opens the first shops and two golds abroad in Hong Kong

The Golden Stock Exchange in Shanghai expanded its operations from the continental China for the first time by starting two new contracts and a gold storage in Hong Kong. This expansion serves various goals, including strengthening the international presence of the stock exchange, which supports China’s influence in the markets of commodity and currencies, in addition to the position of Hong Kong as a global financial center. The Shanghai Gold Stock Exchange (SGE) said in a statement released on Wednesday that the dissertation on new contracts in the yuan will take place, with a cash retrenchment or actual delivery, including the new gold treasury run by the ‘Limited Bank of China’ unit in Hong Kong. The trading of the two decades, which cover the different purity of the yellow metal, will begin on Thursday, while traders are released in the facility until the end of the year of the storage fees, in a move aimed at attracting investors. As the largest gold producer and consumer in the world, China wants to expand its influence in the pricing of this important commodity. The pricing of the new contracts in Balwan is particularly interested in the light of Beijing’s attempt to reduce the dependence on the US dollar and improve the use of its currency in international trade. You may also be interested in: Hong Kong strives to turn into a global Gold Trade Center in 2002 by the Chinese People’s Bank. In 2014, the stock exchange launched the ‘international painting’ to enable foreign investors to enter the Chinese market directly. These efforts are witness to an acceleration to include other goods, as the ‘Shanghai Stock Exchange for futures’ has revealed the largest Chinese platform for the trading of raw materials, which recently has to expand the possibility of foreign investors. Although the Shanghai Stock Exchange is the largest in the world in terms of trade in material gold, London is still the most important position in the world market, while other centers such as Singapore try to utilize a part of this ancient market. The global interest in gold has increased after a large wave of rise, which has led prices to record levels, as prices have multiplied since the beginning of the current decade. Gold is its attraction due to a safe haven and a reliable way to preserve value, as China has been one of the most prominent buyers for the past three years, in an effort to diversify its reserves away from the dollar. As far as Hong Kong is concerned, it is a fixed banking center that seeks to keep up with the expansion of other financial centers in the region. The former British colony accepts a plan to improve its presence in the commodity sector, from storage to trade and logistics services, including gold markets.