Shanghai Gold Exchange International Board-Launching of Re-export after Processing Business of Standard Gold Ingot
On June 18th, 2020, Bank of China Limited Shanghai Free Trade Zone Branch("BOC FTZ Branch"), an international member of Shanghai Gold Exchange ("SGE"), and Gold Mountains (Hong Kong) International Mining Limited, the subsidiary of Zijin Mining Group have completed the first “Re-export after Processing” business of standard gold ingot via the international board of Shanghai Gold Exchange ("SGEI"). In addition, on June 19th, the two parties have completed the first block trade of iAu99.5 contract on SGEI, which the underlying is 12.5kg standard gold ingot.
In recent years, SGE has actively responded to “Belt and Road” Initiative and launched “Gold Road” Project under which SGEI, as the international business arm of SGE, successively piloted innovative businesses such as "Gold Leasing + Jewelry Processing", “Shanghai-Macau Offshore Account Connect” and gold re-export trade.
This time, based on the actual industrial demand of BOC FTZ Branch and Zijin Mining Group, SGE and SGEI which is fully owned by SGE, create a new business model and redesign business procedure to launch the pilot trade of Re-export after Processing business of standard ingot in the post COVID-19. SGE and SGEI effectively serve the work and production resumption of domestic gold industry, deeply dig out effective capacity of domestic gold industry, and lay the foundation of connecting China’s gold industry “going out” initiative and the growing physical demand along the “Belt and Road” regions.
12.5kg standard gold ingot contract is one of the major trading products in global market. The first block trade of SGE iAu99.5 is an outstanding symbol of the interconnection between SGEI and overseas gold markets. In the future, SGE will continue to make full use of the SGEI platform advantages to promote various innovative cross-border business pilot projects, to better serve the development of China’s gold industry, and effectively accelerate the internationalization of China's gold market and gold industry.