BNP Paribas Expands Gold Market Activities in China
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The bank can now participate in listed gold contracts, gold leasing and other gold derivatives business, and provide more services to its domestic and international client base.
BNP Paribas (China) has been granted membership of the main board of the Shanghai Gold Exchange, which will allow the bank to fully participate in the Chinese gold market by offering deeper liquidity and broader product scope, it announced in a press release on Tuesday.
SGE was set up in by the People’s Bank of China in 2002 as a center for gold, silver and platinum trading, growing to become the second-largest gold exchange globally by volume by 2018. BNP Paribas (China) started bilateral gold trading on SGE’s international board in 2017, and now conducts spot, swaps and options trading.
Through our participation on the mainboard, we hope to position China as a global center for gold trading, Mikko Russi, BNP Paribas head of FX, Local Markets & Commodity Derivatives for Asia Pacific, said in the statement.
Questions & Answers
Q.What new activities can BNP Paribas (China) now undertake in the gold market?
What new activities can BNP Paribas (China) now undertake in the gold market?
The bank can now participate in listed gold contracts, gold leasing, and other gold derivatives business. This allows them to offer more services to both domestic and international clients.
Q.Which entity granted BNP Paribas (China) the new membership?
Which entity granted BNP Paribas (China) the new membership?
BNP Paribas (China) has been granted membership of the main board of the Shanghai Gold Exchange. This enables their full participation in the Chinese gold market.
Q.When was the Shanghai Gold Exchange established and by whom?
When was the Shanghai Gold Exchange established and by whom?
The Shanghai Gold Exchange was set up in 2002 by the People’s Bank of China. It serves as a central hub for trading gold, silver, and platinum.
Q.What is the strategic goal behind BNP Paribas' increased participation on the SGE mainboard?
What is the strategic goal behind BNP Paribas' increased participation on the SGE mainboard?
BNP Paribas hopes its participation on the mainboard will help position China as a global centre for gold trading. This was stated by Mikko Russi, their head of FX, Local Markets & Commodity Derivatives for Asia Pacific.
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