Shanghai Gold Exchange to offer yuan-back futures contract in Budapest

Jon Economy

China is looking to expand the use of its yuan-denominated gold fix overseas, the chairman of the mainland China’s sole gold bourse said today, reflecting on Beijing’s attempt to vie for a bigger say in the price-setting of the precious metal.
It is now expected that a gold futures contract based on China’s yuan-backed gold benchmark price could be listed on the Budapest Stock Exchange in Hungary as soon as the second half of this year, said Jiao Jinpu, chairman of the Shanghai Gold Exchange (SGE) at the Lujiazui Forum, which ends in Shanghai today.
SGE is considered the world’s largest physical bullion exchange.
The yuan-backed benchmark fix, launched by the SGE in April 2016, reflects Beijing’s hopes of reducing its reliance on U.S.-dollar based prices of the metal, he said.
It also reflects Beijing’s latest step to push ahead its plan to make the yuan a global currency, analysts added.

This post was published at South China Morning Post