central bank wants to attract more players to the bullion
market and encourage firms to use renminbi-denominated gold
derivatives at the Shanghai Futures Exchange.
Market participants may even be
permitted to trade gold contracts on foreign boards of trade,
the PBoC said.
"The development of the gold
industry helps improve the competitiveness of
China’s gold industry, and also promotes the
development of other mineral resources," the bank
More commercial banks will be
allowed to import and export gold, though the PBoC gave no
timetable for this. At present, only the four big state-owned
banks can trade gold.
Trading firms will be
"encouraged" to hedge their positions on the Shanghai Gold
Exchange, which offers gold spot and forward contracts, or the
Shanghai Futures Exchange, which lists gold futures.