Shanghai Gold Exchange to launch HK warehouse operations

Shanghai Gold Exchange plans to expand its warehouse network to Hong Kong to help boost its yuan-denominated products, including gold, to be traded outside the mainland, according to Bloomberg.

The new warehouse will be operated by a subsidiary of Bank of China (3988), thought the specific timetable is not yet clear, the report said.

The People's Bank of China stated that it supports SGE's motion to set up warehouses overseas last month, but did not specify the location.

The London Metal Exchange has approved four licensed warehouses in Hong Kong in April in an effort to transform the city into an international metals trading hub.

SGE now has two warehouses in Shanghai and one in Shenzhen.

HELEN ZHONG