Beijing: The World Gold Council (WGC) and the Shanghai Gold Exchange signed a memorandum of understanding aimed at further developing the Shanghai free trade zone as an international gold market.

In a press release, the WGC said the “Comprehensive Strategic Cooperation Agreement” will support the development of gold investment products for the regional and global industry.

Commenting on the partnership, WGC CEO Aram Shishmanian said: “As the market shifts from west to east, the expansion of strong gold trading hubs in Asia will improve price discovery, liquidity, transparency and efficiency, all of which will transform the landscape of the global gold market.”

“The partnership with the World Gold Council will further improve the connection between China and the global gold industry,” Xu Luode, chairman of the Shanghai Gold Exchange, said at the January 15 signing ceremony.

In September last year, the Shanghai Gold Exchange established its international board to mark the globalization of the Chinese gold market.

The board allows international investors to use RMB to trade in precious metals and use physical gold services such as storage, trusteeship, delivery, leasing and transit.

“The launch of the international board marks a significant transformation, not merely by further integrating with the global market, but also by laying a solid foundation to establish a new global market structure in the gold industry,” Luode added.