The People's Bank of China has approved the membership of foreign banking institutions into the Shanghai Gold Exchange (SGE), according to the 4th General Meeting of the SGE yesterday. This decision demonstrated that China has opened its gold market to the outside world.

Foreign banks must register with corporations in China to be members of the SGE. Many foreign banks have already filed applications with the SGE, including Standard Chartered, HSBC, Scotia Bank, Societe Generale Group, and UBS.

It is reported that the SGE is preparing to draw up a plan to attract foreign members in several sectors such as exchange, clearing, imports and exports, and capital management. Foreign members will join the exchange this year.

The SGE will cooperate with the Chinese Gold and Silver Exchange Society (CGSE) and Hong Kong International Airport, to achieve exchange within the international market.

By People's Daily Online