SHANGHAI Nov 22 China, set to overtake India
this year as the world's top gold consumer, will start gold
swaps trading on the interbank market next week, giving more
hedging tools for banks dealing in bullion.
The Shanghai-based China Foreign Exchange Trade System will
start gold swaps trading on November 25th, with the Shanghai
Gold Exchange responsible for related settlement and delivery,
the National Interbank Funding Center said in a statement on
The start of gold swaps trading comes as China is taking
steps to open up its gold market and increase financial
The Shanghai Futures Exchange launched simulated trading for
gold and copper options on Tuesday. The central bank said in
September it plans to raise the number of firms allowed to
import and export gold and also ease restrictions on individual
buyers of the precious metal.
Chinese gold purchases will top 1,000 tonnes in 2013 due to
a surge in demand for gold jewellery, bars and coins, according
to World Gold Council forecasts.
The amount is well ahead of India, bullion imports have
fallen due to government restrictions aimed at supporting the
currency and reducing a current account deficit.
(Reporting by Fayen Wong; Editing by Miral Fahmy)