China Mulls Offshore Yuan Gold Trade in Free Trade Zone
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China, the world’s largest bullion consumer and producer, is considering allowing the use of offshore yuan in gold trading in the Shanghai free-trade zone.
The Shanghai Gold Exchange, the country’s biggest physical bourse for the metal, is proposing to let holders of offshore yuan accounts trade the three contracts it will offer, including bullion of 99.99 percent purity, according to a draft of the plan obtained by Bloomberg News. It stipulates that gold may be physically delivered into a warehouse in the zone. Gu Wenshuo, a spokesman at the Shanghai Gold Exchange, wasn’t available for comment when contacted by phone, text message and e-mail.