Shanghai Gold Exchange
The Shanghai Gold Exchange (SGE) is one of the most important gold exchanges in the world, playing a key role in the global gold market since its establishment in 2002.
At the heart of China’s gold market, the Shanghai Gold Exchange is responsible for the trading and settlement of gold products in the country. The SGE is both a centralized physical bullion exchange and a derivatives exchange. It has the right to issue gold products and the right to trade in and clear domestic gold futures, gold derivatives and other related products, and act as the exclusive gold product transaction platform.
The exchange enables members from different parts of the world to trade in, store and deliver gold, locally and globally, with greater assurance and safety. It is estimated that around 300 gold companies and 8,000 gold dealers are members of the exchange. The SGE membership is divided into two categories – domestic and foreign. Up to now, 30 Chinese and foreign enterprises have successfully joined the SGE platform, including Bank of China, Bank of Communications and Standard Bank. The SGE is also deeply involved in precious metal institution cooperation and actively participates in international cooperation activities to promote the establishment of gold exchanges, gold trading, and gold investment fund products.
The trading activities of the SGE include spot, futures, precious metals derivatives, insured gold accounts and lease trading, among others. A unique gold pricing formula was established through the SGE to formulate an international gold pricing system and improve the fairness of the gold trading activities. This has enabled China to play a growing role in the global gold market.
The SGE operates strict quality control and product registration systems to ensure accurate, safe and transparent trading activities. To ensure the safety of gold trading and delivery, the Shanghai Gold Exchange also purifies and examines gold bars and issues identification cards to authenticate precious metal products, as well as developing a series of regulation systems such as the supervision and regulation system for gold deposit businesses.
In summary, the Shanghai Gold Exchange is a game-changing force in the global gold market. It brings unprecedented liquidity and transparency to the Chinese gold market and has enabled China to take its place as an important player in the world’s gold market.
