Tuesday, February 20, 2018

Hong Kong gold exchange to aid Yuan internationalization by creating gold trade corridor along Silk Road

Hong Kong has long been the conduit to the outside world for China, and this will become especially relevant in their Silk Road project.  And as a compliment to China's planned internationalization of its currency, the Hong Kong gold exchange is looking to expand all along the Belt and Road corridor to provide products and services under the RMB banner.

The Chinese Gold & Silver Exchange Society (CGSE), Hong Kong’s gold exchange, is in talks with Singapore, Myanmar and Dubai to establish a gold commodity corridor to promote yuan-denominated products under China’s Belt and Road Initiative, according to its president Haywood Cheung Tak-hay. 
The gold commodity corridor could be formed by establishing an integrated infrastructure network by using Hong Kong as a base, and connect the proposed bonded warehouse in Qianhai with commercial users and precious metals traders in countries along the Belt and Road, Cheung said on Tuesday at an event to mark the exchange’s first day of trading in the Year of the Dog. 
“The successful linkages of such a gold corridor could probably boost demand from users and investors for kilobar gold,” Cheung said. “This may also increase the turnover of yuan-denominated products by two or three times.” – South China Morning Post

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