Three More Banks Given Licenses to Import Gold
More Banks Given LicensesThe government is now allowing three more banks which include a foreign lender to import gold. The report came from sources that have details on the matter as the world’s number one gold buyer is gearing itself for its strongest effort in gaining pricing power of the precious metal. These will bring the number of firms that is allowed to import gold into China to 15.
The move just came a few days before the launch of a new international gold exchange in Shanghai in which China hopes to be one of the price discovery centers. China along with other Asian gold trading centers are calling for a more localized pricing of the precious metal that is under investigation by regulators as suspicions of manipulation is being reported. The three banks namely Shanghai Pudong Development Bank, Standard Chartered and China Merchants Banks are given regulatory approval to import gold. These three banks were given licenses earlier this month but still haven’t started importing gold yet.
Trading date coming from the Shanghai Gold Exchange which is the platform for all physical tradrs in China is showing that Shanghai Pudong Development Bank is ranked top among the ten trading members from January until July which was followed by China Merchants which among the top ten as well. Active traders on the Shanghai Gold Exchange were just waiting for the import license for more than a year. By allowing more banks to import gold is a sign by regulators are slowly opening up the gold market especially to foreign firms, but is not necessarily mean that import volumes in China will increase.