Hong Kong and Shanghai exchanges plan gold and silver alliance
Cities' gold and silver exchanges to start talks on deal for tie-up, allowing mainland bourse access to international market through Hong Kong
The Chinese Gold and Silver Exchange Society will soon kick off talks with the Shanghai Gold Exchange for a potential alliance, the president of the local gold bourse told the South China Morning Post.
This will mark another potential tie-up of the mainland and Hong Kong financial markets.
Chinese Gold and Silver Exchange Society president Haywood Cheung Tak-hay told the Post in an exclusive interview that his exchange would start talks in the next two months with the top executives of Shanghai Gold Exchange about the alliance.
"We are heading in the direction of setting up an alliance, although we have not yet decided on the details on how the two bourses would work together under such tie-up," Cheung said.
"This would be an important step to bring the gold markets between Hong Kong and mainland closer. This is also important to let the mainland gold bourse to go into the international market through Hong Kong."
Earlier this month, Hong Kong and mainland regulators announced a through-train scheme for investors in Hong Kong and the mainland to cross-trade stocks listed in Hong Kong and Shanghai from October. This would effectively be a liberalisation of capital controls on 550 billion yuan (HK$690 billion).
Commodity markets are now also talking of linking up. London Metal Exchange chief executive Garry Jones told the Post on Thursday that high-level talks are under way to form a potential alliance between the LME with the three mainland commodity exchanges in Shanghai, Dalian, and Zhengzhou.