Shanghai Gold Exchange

Shanghai Gold Exchange
legal form	Non-profit organization
founding	October 30, 2002
Seat	Shanghai , People's Republic of China
management	Wang Zhe ( CEO )
Branch	Exchanges
Website	www.sge.sh

The Shanghai Gold Exchange (SGE) is the largest commodity exchange in the People's Republic of China for trading precious metals ( gold , silver and platinum ).

Trade structure

The Shanghai Gold Exchange is a non-profit organization organized by the Chinese People's Bank and registered with the State Administration for Industry and Commerce (SAIC). It is one of the ten largest gold exchanges in the world. In addition to gold bars, primarily gold futures and options are traded here. The gold exchange is based in the building of the former Russian-Chinese bank, built between 1899 and 1902 according to plans by the German architect Heinrich Becker in the Italian neo-renaissance style on Bund 15 in Shanghai .

Not only local companies are allowed to trade on the stock exchange. Several foreign credit institutions have been approved to join the Shanghai Gold Exchange: Australia and New Zealand Banking Group , ScotiaMocatta , Barclays , Credit Suisse , HSBC , Standard Chartered Bank and United Overseas Bank . In 2008, HSBC was the first foreign bank to receive approval to start trading gold futures .

In 2010, a total of 6,051.50 tons of gold were traded on the stock exchange, an increase of 28.46 percent compared to 2009. The trading volume for silver was 73,614.96 tons (+353.08 percent) and for platinum 54.69 tons (+27.78 percent). In the warehouse of the Shanghai Gold Exchange there were gold bars with a volume of 2,913.73 tons - of which 837.21 tons were delivered. Physical delivery saw an increase of 39.65 percent compared to the previous year.

history

Gold trading played an important role in the Republic of China as early as the beginning of the 20th century . In 1920 the existing exchanges in Shanghai merged to form the Chartered Stock and Produce Exchange. Securities, gold and silver bars, cotton, cotton thread, grain and oil, furs and hides were traded on the stock exchange. In the 1930s, the Shanghai Gold Business Exchange was one of the largest trading centers for gold bars in Asia, and gold was very popular as an investment. The gold price was set daily on the stock exchange .

With the founding of the People's Republic of China in 1949, the Chinese People's Bank took over the monopoly for trading in precious metals. Private individuals were excluded from trading in gold or silver. The private ownership of precious metals was banned (see gold ban ). In 1982 the government opened the gold market to the jewelry industry. On September 1, 1982, private individuals were allowed to purchase gold jewelry for the first time in more than 30 years. On June 15, 1983, the state legalized private gold and silver ownership. The trade in precious metals remained forbidden for the population.

In 2000 the government decided to establish a regular gold market, and in 2001 the central bank gave up its monopoly on gold trading. With the establishment of the Shanghai Gold Exchange on October 30, 2002, gold trading was expanded significantly and demand was stimulated. The trade ban for private investors has been lifted. In the next five years the People's Republic of China overtook the USA and became the second largest customer after India.

On June 7, 2007, the central bank approved trading in gold and silver futures. The Chinese Commission for Safety and Regulation (CSRC) has been monitoring trade since then.

From April 2016, gold trading will only be conducted in the currency of the People's Republic of China , the yuan . In addition, in the course of the measurement law, the gold price on the gold exchange in Shanghai is no longer calculated in ounces , but in grams . In addition, the trade is only made with physical gold, which should be handed over immediately.