Chinese Daily newspaper reported that Bank of China will become the first bank in Asia involved in determining the price of gold on the world market which will enhance the influence of Chinese enterprises in the international market for this precious metal.
Intercontinental Exchange (ICE) announced two days ago, their consent to the participation of the Bank of China, which is considered one of China’s largest state-owned banks, in gold pricing at London’s Association of alloy , so that it became involved directly in the pricing went InterContinental London Stock Exchange .
The gold market in London is pricing gold for immediate delivery a global hub. The pricing of the London gold price index significant in the world, and is used widely in the settlement of transactions between producers and consumers and financial institutions, as gold is considered by many in the pricing of derivatives contracts traded scale.
In this regard, Sun Yu director of the Bank of China branch in London said that gold pricing in London is dominated by five European and American banks, and it can not Chinese financial institutions for a long time to be involved in pricing directly went to London in spite of China the fact that the largest producer and consumer of gold in the world.
He added, according to Middle East News Agency, said the Bank of China after becoming a bank pricing went to London will participate in this market more and more.
For his part, Ruth Crowell chairman of the London Bullion Market Association welcomed the participation of the Bank of China in the gold pricing mechanism, stressing that the Bank of China as a founding member of the Association of worthy to become the first Chinese bank participates in the gold directly pricing.