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Brief Introduction of Shanghai Gold Exchange


Shanghai Gold Exchange (SGE), established by the People’s Bank of China (PBOC) with approval from the State Council and officially launched in October 2002, is the premier state-level market in China dedicated to gold trading.

Over the past 15 years, SGE has steadfastly adhered to the principle of serving the real economy and industry development. It has continuously worked towards expanding investment channels for investors. As a result, SGE has emerged as the central hub among China’s gold markets and a major global marketplace for gold, silver, and other precious metals trading. In 2018, the exchange witnessed remarkable achievements, with a total trading value of RMB 21.32 trillion, representing a year-on-year increase of 9.20%. Gold turnover reached 67,500 tons, reflecting a significant year-on-year growth of 24.35%. However, silver turnover experienced a decline of 27.80% year-on-year, reaching 834,100 tons. The international board of SGE has experienced rapid expansion in terms of market scale. In 2018, the exchange recruited 74 international members, and 77 international clients chose SGE as their trusted agents. This resulted in a substantial turnover of RMB 1.84 trillion, demonstrating a substantial year-on-year increase of 37.77%.

Main business:

After more than a decade of development, SGE has successfully evolved into a comprehensive and multi-tiered gold market system. This system encompasses various markets, such as bidding, inquiry, and leasing, which integrate both the domestic main board market and the international board market. The bidding market, currently boasting the highest trading volume, employs a centralized bidding matching mechanism. It provides an inclusive platform for financial institutions, gold producers, gold users, and other entities and individuals to participate. This market facilitates trading of gold, silver, and platinum, offering a diverse range of 16 trading types, including actuals, spot, and forward contracts. The inquiry market serves as a prominent platform for institutions to engage in customized derivatives trading. It primarily facilitates trading of gold spot, forward, swap, and option contracts. In recent years, the inquiry market has experienced rapid growth in trading volume, solidifying its position as a vital component of SGE’s market infrastructure. Additionally, SGE has introduced the lending market, which enables gold borrowing among commercial banks and gold leasing among banks and enterprises. This market represents an important innovation and a beneficial exploration by SGE to support the development of gold producers and gold users. It effectively enhances the investment and financing functions of the gold market, fostering a more robust ecosystem for all participants involved.