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June 17, 2015, 12:53 a.m. EDT

Bank of China becomes first Chinese bank to help set gold price

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By Ese Erheriene


Bloomberg

A Chinese bank will for the first time join the group of lenders that sets global gold prices, marking another step in China’s push for a bigger role in international financial markets.

Bank of China Ltd., /zigman2/quotes/204682472/delayed HK:3988 +0.65% /zigman2/quotes/201568493/composite BACHY +0.28%   /zigman2/quotes/209359942/delayed CN:601988 +0.61%  one of China’s big-four state-owned lenders, will participate in the twice-daily electronic auctions that set the LBMA Gold Price benchmark, the London Bullion Market Association said Tuesday.

“Although ... the world’s largest gold producer and consumer, China has never played a major role in the global gold fixing,” said Yu Sun, Bank of China’s U.K. general manager. “Bank of China’s direct participation in the gold auction would reinforce the connection between the Chinese domestic market and overseas markets.”

China vies with India as the largest consumer of gold, and together the two countries make up more than 50% of global demand. China is the world’s biggest importer of the yellow metal, as it consumes more than three times the amount of gold it produces. Demand for gold in China fell to 273 tons in the first quarter, down 7% from the year before, as cooling economic growth and caution among bargain hunters curbed consumer appetite, according to the World Gold Council.

The move by Bank of China to join the gold price was broadly welcomed by gold market participants, who said it would lead to more trading volumes and greater price transparency. It will join UBS AG /zigman2/quotes/206172872/composite UBS +1.54%  , Goldman Sachs Group Inc. /zigman2/quotes/209237603/composite GS +0.89%  , Bank of Nova Scotia /zigman2/quotes/206642548/delayed CA:BNS +0.19%  , Barclays Bank PLC /zigman2/quotes/208409333/delayed UK:BARC +2.46%  , HSBC Holdings PLC /zigman2/quotes/202687335/delayed HK:5 -0.99%   /zigman2/quotes/203901799/delayed UK:HSBA +1.50%  , Société Générale SA /zigman2/quotes/206663756/delayed FR:GLE +1.27%  and J.P. Morgan Chase & Co. /zigman2/quotes/205971034/composite JPM +0.54%  

An expanded version of this report appears on WSJ.com .

/zigman2/quotes/204682472/delayed
HK : Hong Kong
HK$ 3.08
+0.02 +0.65%
Volume: 338.76M
April 16, 2021 4:08p
P/E Ratio
4.18
Dividend Yield
7.62%
Market Cap
HK$1082.72 billion
Rev. per Employee
HK$3.34M
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/zigman2/quotes/201568493/composite
US : U.S.: OTC
$ 9.89
+0.03 +0.28%
Volume: 24,006
April 16, 2021 1:18p
P/E Ratio
4.17
Dividend Yield
11.95%
Market Cap
$139.41 billion
Rev. per Employee
$427,123
loading...
/zigman2/quotes/209359942/delayed
CN : China: Shanghai
¥ 3.32
+0.02 +0.61%
Volume: 102.45M
April 16, 2021 3:00p
P/E Ratio
5.07
Dividend Yield
5.93%
Market Cap
¥910.69 billion
Rev. per Employee
¥2.95M
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/zigman2/quotes/206172872/composite
US : U.S.: NYSE
$ 16.11
+0.24 +1.54%
Volume: 1.44M
April 16, 2021 1:48p
P/E Ratio
9.02
Dividend Yield
2.28%
Market Cap
$55.99 billion
Rev. per Employee
$450,560
loading...
/zigman2/quotes/209237603/composite
US : U.S.: NYSE
$ 341.57
+3.02 +0.89%
Volume: 2.34M
April 16, 2021 1:48p
P/E Ratio
8.50
Dividend Yield
1.46%
Market Cap
$115.18 billion
Rev. per Employee
$1.31M
loading...
/zigman2/quotes/206642548/delayed
CA : Canada: Toronto
$ 77.58
+0.15 +0.19%
Volume: 595,124
April 16, 2021 1:33p
P/E Ratio
14.60
Dividend Yield
4.64%
Market Cap
$93.88 billion
Rev. per Employee
$464,973
loading...
/zigman2/quotes/208409333/delayed
UK : U.K.: London
189.18 p
+4.54 +2.46%
Volume: 61.81M
April 16, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
0.53%
Market Cap
£31.52 billion
Rev. per Employee
£332,602
loading...
/zigman2/quotes/202687335/delayed
HK : Hong Kong
HK$ 45.20
-0.45 -0.99%
Volume: 18.38M
April 16, 2021 4:08p
P/E Ratio
30.20
Dividend Yield
2.58%
Market Cap
HK$921.44 billion
Rev. per Employee
HK$2.56M
loading...
/zigman2/quotes/203901799/delayed
UK : U.K.: London
427.45 p
+6.30 +1.50%
Volume: 19.58M
April 16, 2021 4:35p
P/E Ratio
28.52
Dividend Yield
2.54%
Market Cap
£86.02 billion
Rev. per Employee
£257,711
loading...
/zigman2/quotes/206663756/delayed
FR : France: Euronext Paris
22.39
+0.28 +1.27%
Volume: 2.43M
April 16, 2021 5:39p
P/E Ratio
N/A
Dividend Yield
2.46%
Market Cap
€17.24 billion
Rev. per Employee
€237,304
loading...
/zigman2/quotes/205971034/composite
US : U.S.: NYSE
$ 152.99
+0.82 +0.54%
Volume: 8.35M
April 16, 2021 1:48p
P/E Ratio
12.13
Dividend Yield
2.36%
Market Cap
$461.40 billion
Rev. per Employee
$498,110
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