Today was the
inauguration ceremony replete with myriad ministers and mandarins from
central and regional government.
This initiative is
supported at the highest levels in China with SOEs as shareholders, the
support of the Beijing Gold Exchange and SAFE (State Administration of
PAGE are buying
into the concept that leverage has its limits and that leasing must also be
This new exchange
is international facing, in line with Yunnan province being China's formal
gateway to trade with its neighbours.
This exchange with
a FIX (8am Beijing time) has major ramifications has the potential to improve
price discovery and show up the shabby efforts of its competitor markets.
bombshell however, is the offer of Rmb contracts for international investors,
agreed by SAFE.
part of the Exchange's business is expected to be available by Q4.
straight into the platform are the customers of Agricultural Bank of China
(320million retail + 2.7million corporate) who are able to trade 10oz
To give an idea of
the scale here, if 1% of their customers bought one contract that would
represent around 100tonnes of physical.
As if one should
need more incentive to learn more, one of the participants in the video may
also be particularly of interest.