BOCHK appointed as sole settlement bank for newly launched Shanghai-Hong Kong Gold Connect

The Bank of China (Hong Kong) Limited (BOCHK) was appointed on Friday as the sole settlement bank for the newly launched Shanghai-Hong Kong Gold Connect, the bank said in a press release.

The appointment was made by Shanghai International Gold Exchange Co. Ltd. (SGEI), a wholly-owned subsidiary of Shanghai Gold Exchange. According to the bilateral agreement, BOCHK will provide SGEI with funds settlement and cross-border payment services for cross-border gold trading related transactions.

Meanwhile, Po Sang Financial Investment Services Co. Ltd., a subsidiary of BOCHK and a special international member accredited by the Chinese Gold and Silver Exchange Society in Hong Kong, successfully completed the first 1-ton gold futures auction trading Friday in the Shanghai Gold Exchange International Board with Bank of China (Shanghai) Pilot Free Trade Zone Branch.

The launch of the Shanghai-Hong Kong Gold Connect, which also occurred on Friday, marked the deepening of mutual market connectivity between the two places from stock to commodity trading and further promotes their financial integration and development.

Prior to the latest move, the Shanghai-Hong Kong Stock Connect was kicked off on Nov. 17, 2014 as a major move of China's reform and opening up of its capital market.

It was reported then that further connectivity between the two places had been under discussion, and the Shanghai-Hong Kong Gold Connect was one such move. Endi